- Kristopher Fraser |
Hearing you are no longer in bankruptcy is music to a company’s ears, and The Walking Company can relate to the sound of that song. The shoe retailer has officially exited Chapter 11 bankruptcy four months after filing according to a press release from the company. The company currently has 185 stores, a decrease of 23 from when they originally filed.
Last week the company said they received 10 million dollars in equity as part of a pre-negotiated plan with stakeholders and an enhanced financing package from Wells Fargo.
In a statement, CEO Andrew Feshbach said the reorganization in Chapter 11, “has positioned our company for long-term success” and they could now focus on growth initiatives.
The Walking Company’s financial troubles date back to the Great Recession of 2008. They were well on their way with expansion to malls and more stores when the economy tanked, and their stores stopped reaching projected sales goals. The company eventually filed their first Chapter 11 bankruptcy, which they obviously emerged from. They would later be victim to another’s retail sector downturn, leading to their second recent bankruptcy which they just emerged from.
Their next step after exiting bankruptcy will be creating an omnichannel approach to business to serve both digitally and physically. Let’s see how they can handle a still struggling retail market.