PRESS RELEASE
Shoes For Crews, LLC and its U.S. affiliates (collectively, “Shoes For Crews” or the “Company”), a global leader and pioneer in slip-resistant footwear, today announced that its U.S.-based entities have filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware (the “Court”) to effectuate a value-maximizing sale transaction that will allow for the continued operation of the business, with the resources to invest in growth across key markets globally.
The Company enters this process with the strong support of 100% of its first lien secured lenders, its second lien lenders, and its primary equity sponsor, CCMP Capital Advisors, LP (“CCMP”), among other key stakeholders. Pursuant to a restructuring support agreement entered into prior to the filing, the Company intends to enter into a stalking horse asset purchase agreement (the “Stalking Horse APA”) with its first lien secured lenders to sell the business and enable the continued operation of the business as a going concern under new ownership. The Company is commencing a court-supervised sale process to “market-check” the Stalking Horse APA and seeks the highest or otherwise best bid for its assets to maximize value for all stakeholders. The Company is targeting the sale process to be completed in approximately two months.
“Today’s announcement marks an important step forward for Shoes For Crews that will position us financially to continue investing in our industry-leading products and delivering for our valued customers well into the future,” said Donald Watros, President and Chief Executive Officer, Shoes For Crews. “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.”
The Company has also entered into an agreement to receive $30 million of debtor-in-possession (“DIP”) financing that, following court approval, is expected to enable the Company to continue operations in the ordinary course during the Chapter 11 process. The Company expects the DIP financing, together with cash generated from ongoing operations, to provide ample liquidity to support its operations and ensure continuity of manufacturing and distribution.
Shoes For Crews has also filed standard “first day” motions in the Chapter 11 cases, seeking court approval to continue supporting its operations during the court-supervised sale process. These motions, upon approval, will ensure the continued payment of all employee wages and benefits, maintenance of all customer programs, and other relief measures customary in these circumstances.
The Company’s international entities incorporated or organized in Canada, Europe, the Pacific, and Asia are not a part of this process, and their operations are not expected to be impacted.
Additional information is available through the Company’s claims agent, Omni Agent Solutions, at https://omniagentsolutions.com/ShoesforCrews. Stakeholders with questions can email ShoesforCrewsInquiries@OmniAgnt.com or call 888-202-5659 (U.S./Canada) or 747-288-6384 (International).
Company Advisors
Ropes & Gray LLP and Chipman Brown Cicero & Cole, LLP are serving as legal advisors, Berkeley Research Group, LLC is serving as financial advisor, Solomon Partners Securities, LLC is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company.
