However, 593 independent franchise Athlete's Foot stores, totaling an estimated 11.9 million sf of leased space, will stay open, the company says. Despite a $20-million loan from GMAC Commercial Finance LLC, the retailer ran into inventory and stocking problems that triggered the Chapter filing, the company says. A total 1,047 workers will lose their jobs when the stores close.
The retailer owes GMAC, its only secured debtor, $14 million, according to the filing. Unsecured creditors New Balance and K Swiss have filed individual claims for $1.4 million. Athlete's Foot's annual gross sales average $500 million but in the filing, the company lists total assets of $33.6 million and total debt of $39.4 million.
The retailer oversees franchised operations in 45 countries. Robert J. Corliss is president and CEO of Athlete's Foot. Corliss headed a management group last year that bought the firm from Group Rallye SA, a retail conglomerate based in France. Group Rallye bought 33-year-old Athlete's Foot in 1984.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.