US: Bakers Footwear abandons restructuring efforts
Bankrupt retailer Bakers Footwear Group has abandoned plans to restructure its business and now intends to liquidate or sell all of its remaining assets.
The company, which filed for Chapter 11 bankruptcy protection in October after falling sales led it to default on its credit line, had been hoping to restructure on a smaller base of stores
It has also liquidated the inventory at 150 of its stores, reduced its staff levels, and negotiated a deal to sell up to 52 stores to Aldo US for US$6.4m.
But in a filing with the Securities and Exchange Commission, Bakers said its reorganisation plan was withdrawn on 2 January. It added that it no longer expects to be able to obtain any alternative financing and will be forced to liquidate.
"Although the company will attempt to wind down its business in an orderly fashion over the next couple of months," it said, it "may be forced into Chapter 7 or an even earlier liquidation."
But it added that talks are continuing with third parties on the possibility of selling certain assets.