The Rockport Company has filed for Chapter 11 bankruptcy protection and will put itself up for sale.
According to the bankruptcy petition filed in the US District Court in Delaware, four subsidiaries of the shoe group have also joined in the bankruptcy filing.
Private equity firm Charlesbank is poised to take over ownership of the shoemaker, The Wall Street Journal reported, citing court papers.
The company said in a statement it was “left with an inadequate liquidity cushion to survive further economic challenges.” That was despite generating revenue of over $203 million in 2022.
It said it was taking the motion to “review and restructure” its assets for the benefit of all stakeholders and to better position the brand for future growth opportunities.
The company said CEO Gregg Ribatt has resigned as CEO and will be available to assist in an orderly transition. Joseph Marchese of PKF Clear Thinking has been appointed chief restructuring officer, it added.
“The immediate relief of Chapter 11 is appropriate to provide the Company the opportunity to assess the situation and develop a process to maximize value recoveries for all stakeholders,” commented Marchese.
“Rockport has valuable assets that can be effectively administered in an organized joint process. I want to assure every employee, customer, creditor, contract party, investor and other stakeholders that we are going to conduct this effort with diligence, thoroughness and transparency.”
Per the WSJ report, Rockport agreed to sell its global wholesale assets, eCommerce platform and retail operations in Asia and Europe to Charlesbank, which will be the lead bidder in a court-supervised sale process. The deal, however, is contingent on better bids.
The company said it currently anticipates operating “business as usual” during the Chapter 11 process and customers should see no disruption in service or product quality.
Contact the author at stephen.gunnion@proactiveinvestors.com