Crew shoes received court approval for sale amid bankruptcy – Footwear News

Shoes For Crews on Friday received approval from the U.S. Bankruptcy Office for the District of Delaware to sell substantially all of its assets to lien-backed lenders through a pursuer loan offer.

According to the anti-slip footwear maker, the sale transaction will eliminate more than $300 million in debt and is expected to provide Shoes For Crews with the financial flexibility to invest in growth in key markets and better serve its global customer base with best-in-class products.

Once the transaction closes in June, the company will be owned by senior secured lenders comprised of a group of leading global investment firms. The deal is not expected to impact its global manufacturing and distribution operations, Shoes For Crews said.

Following the completion of the sale, Shoes For Crews added that it would take out a new loan to support the company’s operations and maintain financial stability.

“With a strengthened financial position under new ownership, we will continue to invest in our industry-leading products and serve as an even better partner to our valued customers, vendors, suppliers and brand partners,” Donald Watros, president and CEO of Shoes “For Crews,” said in a statement. “We remain committed to positioning our company for the future and advancing our mission to create a safer workplace by developing and delivering leading anti-slip footwear to our customers around the world.”

As reported on April 2, 2024:

U.S.-based entities belonging to anti-slip footwear company Shoes for Crews have filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the District of Delaware in an attempt to sell their company.

Shoes for Crews plans to enter into a tracking horse asset purchase agreement to sell the company in a deal that would allow the company to continue operating under new ownership and enable investment in global markets, according to Tuesday’s announcement. CCMP Capital Advisors, LP, the company’s principal equity sponsor, supported this process along with other interested parties. The goal is to complete the process within two months.

The company has retained Ropes & Gray LLP and Chipman Brown Cicero & Cole, LLP as legal advisors, Berkeley Research Group, LLC as financial advisor, Solomon Partners Securities, LLC as investment banker, and C Street Advisory Group as strategic communications advisor.

Shoes For Crews President and CEO Donald Watros said in a statement that the process will help the company “continue to invest in our industry-leading products and deliver to our valued customers well into the future.”

“We are confident that with a stronger balance sheet and the strong support of its new owner, Shoes For Crews will be well positioned to continue our mission to create a safer workplace by continuing to develop and deliver leading anti-slip footwear that ensures every employee returns home safely,” he said.

Shoes for Crews also entered into an agreement to receive $30 million from debtor-in-possession to help the company continue its manufacturing and distribution operations during the bankruptcy process.

Shoes for Crews was founded in 1984 as a solution to common workplace slip and fall injuries. The company owns its own brands, such as Shoes For Crews, Ace Work Boots, Mozo and Lila, and also cooperates with the best footwear brands that feature anti-slip outsole technology, such as New Balance, Dockers, Dansko, DeWalt, Cole Haan, Puma and Carolina Shoes.