Sterling Shoes Inc. entered into an agreement with Town Shoes Limited pursuant to which Town Shoes has agreed to acquire the majority of the assets of Sterling LP, including a substantial portion of Sterling's retail locations operating under the Sterling Shoes, Shoe Warehouse and Freedman banners for a purchase price of $17.5 million.
The Transaction is subject to the terms and conditions set out in the Purchase Agreement, including a requirement to obtain the approval of the British Columbia Supreme Court under the companies' Creditors Arrangement Act. The transaction is currently expected to close on or about May 22, 2012.
“I believe that achieving this agreement presents the best possible outcome for the business,” said Dave Alves, president and CEO of Sterling Shoes LP. “By leveraging the core strengths of the unified organizations we create significant opportunities for the business, employees and ultimately the customer. As a collective portfolio of Freedman Shoes, Shoe Warehouse, Sterling Shoes, The Shoe Company, and Town Shoes, we are excited to be a part of the largest branded footwear retailer in Canada.”
Alan Simpson, CEO of Town Shoes said, “We are very excited to welcome Sterling to the Town Shoes family. We look forward to growing the business with Dave and his team and are confident that together the combined company will go on to great success.”
As previously announced, pursuant to orders of the Court made under the CCAA, Sterling was granted certain protections under the CCAA. Alvarez & Marsal Canada Inc. has been appointed Monitor pursuant to such orders. All inquiries regarding the CCAA proceedings affecting Sterling should be directed to the Monitor at www.alvarezandmarsal.com/sterling or by contacting Tom Powell of A&M at: (+1) 604-639-0846.
Capital West Partners has acted as financial advisor to Sterling in connection with the Transaction.
