Shoe Pavilion Inc., the Sherman Oaks, California-based discount shoe retailer, just filed for bankruptcy protection and sought court approval to close more than half of its 117 stores, according to the L.A. Times.
"There are approximately 43 stores which are clear money losers and will need to be closed in an expeditious manner," Shoe Pavilion said in papers filed Thursday in U.S. Bankruptcy Court in Woodland Hills. An additional 28 outlets will close unless landlords make rent concessions, the company said.
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Inventory at the locations to be closed has an estimated value of $19.5 million. In its bankruptcy filing , Shoe Pavilion listed assets of $61 million and debts of about $27 million. It joins such retailers as Steve & Barry’s, Levitz Furniture Inc. and Sharper Image Corp. in filing for Chapter 11 as American consumers struggle with falling home values and high energy prices.
Shoe Pavilion has stores in Washington, Oregon, California, Arizona, Nevada, Texas and New Mexico and employs about 1,400 people. Bummer