World Footwear

Companies

Rockport files for Chapter 11 bankruptcy proceedings

Jun 20, 2023 United States
Rockport files for Chapter 11 bankruptcy proceedings
The Massachusetts-based footwear company filed for Chapter 11 bankruptcy in a District Court in Delaware. Meanwhile, its CEO, Gregg Ribatt, has resigned
The company – and its subsidiaries (CB Marathon Midco, Rockport IP Holdings, Rockport UK Holdings and CB Footwear Services) –  filed for Chapter 11 bankruptcy proceedings for the second time in five years, with the aim of reviewing and restructuring its assets to benefit stakeholders and position itself for future growth opportunities. According to court documents, despite recording over 203 million US dollars in revenue last year, Rockport was “left with an inadequate liquidity cushion to survive further economic challenges”.

As part of the proceedings, the shoe company also plans to file a motion seeking authorisation for an auction and sale process under Section 363 of the US Bankruptcy Code. If approved by the court, interested parties will be required to submit binding offers to acquire Rockport's assets. It has been reported that the company has entered into negotiations with a potential buyer prior to the filing, but the identity of the potential bidder is currently unknown.

In addition, Rockport announced that its CEO, Gregg Ribatt, has stepped down, but will be available to ensure an orderly transition. In the meantime, Joseph Marchese of the advisory firm PKF Clear Thinking has been appointed Chief Restructuring Officer, and the company is expected to continue operations as usual.

“The immediate relief of Chapter 11 is appropriate to provide the company with the opportunity to assess the situation and develop a process to maximise value recoveries for all stakeholders. Rockport has valuable assets that can be effectively administered in an organised joint process. I want to assure every employee, customer, creditor, contract party, investor, and other stakeholders that we are going to conduct this effort with diligence, thoroughness and transparency”, commented Joseph Marchese.


Image Credits: radianpharma.in

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