Women’s shoe retailer Aerosoles filed for Chapter 11 bankruptcy protection Friday morning, though the company plans to stay in business by undergoing a massive restructuring to adapt to a retail landscape characterized by rapidly changing consumer tastes and trends.
“A critical portion of the company's restructuring is a significant reduction in the number of retail stores it operates in an effort to realign the business with the changing marketplace environment,” the company said in a press release.
Aerosoles, which is known for prioritizing comfort and cost, is expected to shift its business model toward a more e-commerce dominant platform during the reorganization process and close nearly all of its brick-and-mortar locations. It will also focus on its international and wholesale businesses, which it said have thrived throughout recent years.
The bankruptcy filing comes as the company seeks a buyer, though it has more than $100 million in liabilities and is worth about $73 million, according to Dow Jones.
Last year, the company ran into some issues with its supply chain when its only sourcing agent in Asia stopped providing goods, Dow Jones reported.
The company will maintain four main locations across New York and New Jersey while it implements the restructuring process – which is expected to span the course of four months. It is expected to operate those stores as “debtors in possession” under the jurisdiction of the Bankruptcy Court.