Shoes For Crews received approval from the United States Bankruptcy for the District of Delaware for the sale of substantially all of its assets to its first lien secured lenders via a stalking horse credit bid on Friday.
According to the slip-resistant footwear company, the sale transaction will eliminate more than $300 million of debt and is expected to provide Shoes For Crews with the financial flexibility to invest in growth across key markets, and better serve its global customer base with its best-in-class products.
Once the transaction closes in June, the company will be owned by first lien secured lenders, comprised of a group of top-tier global investment firms. The transaction is not expected to impact global manufacturing and distribution operations, Shoes For Crews said.
Upon completion of the sale, Shoes For Crews added that it will enter into a new credit facility to support the company’s operations and continued financial stability.
“With strengthened financial footing under new ownership, we will continue investing 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 chief executive officer of Shoes For Crews, said in a statement. “We remain committed to positioning the business for the future and advancing our mission of creating a safer workplace by developing and providing the leading slip-resistant footwear to our customers around the world.”
As reported on April 2, 2024:
The U.S. based entities of slip-resistant footwear company Shoes for Crews has filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware in an effort to undergo a sale of its business.
According to a Tuesday release, Shoes for Crews plans to enter a stalking horse asset purchase agreement to sell the business in a deal that would enable the company to keep operating under a new owner and would allow for the investment into global markets. CCMP Capital Advisors, LP, the company’s primary equity sponsor, supported the process along with other stakeholders. The goal is to complete the process in 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.
President and chief executive officer of Shoes For Crews Donald Watros said in a statement that the process will help the company “continue investing in our industry-leading products and delivering for our valued customers well into the future.”
“We are confident that with a stronger balance sheet and the strong support of new ownership, Shoes For Crews will be on track to continue in our mission of creating a safer workplace by continuing to develop and provide the leading slip-resistant footwear to bring every employee home safely,” he said.
Shoes for Crews has also entered a deal to receive $30 million of debtor-in-possession to help the company’s manufacturing and distribution operations continue to function during the bankruptcy process.
Shoes for Crews was founded in 1984 as a solution to the prevalence of slip and fall injuries in the workplace. The company owns proprietary brands like Shoes For Crews, Ace Work Boots, Mozo and Lila and also partners with top footwear brands that feature its slip-resistant outsole technology, such as New Balance, Dockers, Dansko, DeWalt, Cole Haan, Puma and Carolina Boots.
