Baltimore-based Shoe City has decided to close all operations including its online platform ycmc.com after filing for bankruptcy in the federal court of Maryland last week.
The company offers footwear, apparel and accessory products from brands including NIKE, Converse, and Vans through its network of 39 stores located across Maryland, Virginia, and the District of Columbia.
According to television station WMAR 2, the company has stores in shopping centres like Mondawmin Mall and Reisterstown Plaza in Baltimore, Eastpoint Mall, Parkway Crossing in Parkville, Valley Centre in Owings Mills, and Edgewater Village in Edgewood.
As of the petition date, Shoe City has approximately 161 full-time employees and 233 part-time employees, with approximately 61 employees working at its corporate office and warehouse locations.
In addition, the company has approximately 333 employees working at its store locations.
The company expects to close stores by 31 May 2023.
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Chief restructuring officer Stanley W. Mastil in the bankruptcy filing said: “Unfortunately, after 74 years in business, the Shoe City legacy has come to an end.”
“Through this Chapter 11 Case, the Debtor intends to liquidate substantially all of its assets through orderly going out of business and store closing sales which will provide the best result for all interested parties.
“The Debtor intends to conclude the store closing sales by 31 May 2023 and is hopeful that the proceeds of these sales will allow the Debtor to pay the Pre-Petition Lender in full.
“The success of the store closing sales will dictate whether there is a runway for a liquidating chapter 11 plan upon the conclusion of the store closing sales.”
The bankruptcy filing comes almost a year after Arklyz announced acquisition of Shoe City and its associated online business ycmc.com.
However, the deal did not complete, according to WMAR 2.
According to court filing, Shoe City incurred operating losses of approximately $280,000 in fiscal years 2020 and $1.76m 2021.