A major shoe retailer now files an unexpected bankruptcy after being hit with a major inflection point where its survival was not assured.
Shoes for Crews may not be a name everyone knows, but it has been a strong player that provides much-needed products.
The company may not be as high-profile as other footwear makers, but it serves a major need for its customers, reports TheStreet.
“40 years ago, our founder Stan Smith noticed a rise in workplace injuries caused by slip and falls and discovered a need to create a solution that would eliminate the problem.
In 1984, the Shoes For Crews brand was formed, and our slip-resistant outsole technology was invented,” the company shared on its website.
“Since then, we’ve protected millions of workers and lowered workers’ compensation costs for thousands of businesses across the globe.
Today, Shoes For Crews is the industry standard and trusted leader in safety footwear solutions for more than 150,000 companies around the world,” the company added.
However, Shoes for Crews filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware.
The filing includes a plan for a “value-maximizing sale transaction that will allow for the continued operation of the business, with the resources to invest in growth across key markets globally.”
The company reported in the filing that it had $100 million in assets and $500 million to $1 billion in liabilities.
Shoes for Crews Chief Financial Officer Christopher Sim said “a confluence of factors” led to the Chapter 11 bankruptcy filing.
“They include inflation; a general downturn in retail; a shift away from brick-and-mortar shopping to online buying; and the pandemic, which forced retailers to eat the expense of supporting brick-and-mortar assets,” Retail Dive reported.
“Over time, these factors have tightened the Debtors’ liquidity and complicated their vendor relationships, culminating in a liquidity crisis by the fourth quarter of 2023, when the Debtors faced dwindling cash flows and the inability to access even incremental liquidity,” Sim said.
“The company intends to enter into a stalking horse asset purchase agreement with its first lien-secured lenders to sell the business and enable the continued operation of the business as a going concern under new ownership,” the company shared.
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A massive shoe retailer is now making exciting plans to become bigger, bolder, and more innovative in the space, the company announced.
Nike is planning a major brand overhaul according to its top executives.
“Simply put, we need to make adjustments in four areas,” Nike CEO John Donahue said during the Q3-earnings call in late March.
“We need to sharpen our focus on sport. We must drive a continuous flow of new product innovation. Our brand marketing must become bolder and more distinctive.”
Nike execs are aware that trends are moving faster than ever before, thanks largely in part to social media, and they intend to capture what they can in the breakneck environment, reports TheStreet.
“Nike has been strong with this in decades past, but its market share is quickly getting nibbled down by smaller forces as consumers gravitate toward niche brands that cater more directly to their interests.”
“Trends are igniting in different places and rapidly spreading around the world. Nike needs to be faster. And so, we’re accelerating a multiyear innovation cycle,” Chief Financial Officer Matt Friend said on the call.
The sneaker giant quickly released new plans for the upcoming summer, which promises to excited customers — and perhaps bring back some enthusiasm for the brand.
“We are sharpening our brand storytelling to tell fewer, bigger stories with greater reach,” Friend said.
“We will focus our demand-creation investments to elevate our brand and most distinctive products, leading with the Voice of the Athlete, amplifying our new innovation, and engaging consumers at the point of sale.”
Nike added that it hoped the upcoming 2024 Paris Summer Olympics would serve as a tableau for its refreshed product lines and reinvigorate consumers’ excitement for the brand.
“We believe the Paris Olympics will serve as a catalyst for our brands as we launch our newest Nike Air innovations for athletes,” Friend added.
“As we look forward, we see that our Olympics Air for Athletes campaign will be the boldest expression of Nike’s brand voice in many years.
Third, we are in the midst of shifting our product portfolio toward newness and innovation,” he said.
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