Aerosoles and certain of its subsidiaries have voluntarily filed petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company will close 74 stores as part of its restructuring.

The company will continue to manage its stores and operate its businesses as debtors in possession under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the bankruptcy code and the orders of the bankruptcy court.

According to first day filings, Wells Fargo was acting administrative agent for the ABL lenders. DIP financing has not been announced.

Denise Incandela, the company’s interim CEO, commented, “For nearly 30 years, Aerosoles has proudly offered consumers stylish and comfortable footwear at a great value. This restructuring will enable Aerosoles to become a stronger, more vibrant brand, and position the company for future growth.”

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 already had begun store closing sales and is seeking approval from the court to proceed with those sales. The company plans to maintain four flagship stores in New York and New Jersey.

In connection with the bankruptcy filing, Aerosoles has filed, and expects to obtain approval for, various customary motions for immediate relief. This immediate relief will allow the company to make certain necessary payments to employees and suppliers that will permit it to continue operating without interruption during the restructuring. The requested approvals include authority to make wage and salary payments, continue various benefits for employees, as well as honor certain customer programs, including gift cards and customer loyalty programs.

Aerosoles’ legal advisor in connection with the restructuring is Ropes & Gray. Berkeley Research Group serves as its restructuring advisor and Piper Jaffray serves as its investment banker for the restructuring. Hilco Merchant Resources is assisting on store closings.