Alvarez & Marsal, the turnaround firm, has been appointed receiver-manager of Shoeme Technologies Ltd., the owner of Shoes.com, OnlineShoes.com and Shoeme.ca. The appointment was pursuant to a British Columbia Supreme Court Order (Vancouver Registry).
As reported, Shoes.com as well as OnlineShoes.com and Shoeme.ca abruptly shut down on July 27. At the time, the company said it was working with its secured lenders to determine the process to liquidate assets and intended to assign some or all of the group companies into bankruptcy.
According to a court order, Alvarez & Marsal will “take possession of and exercise control” over all assets, undertakings and properties of Shoeme, including resolving debts.
According to Business Vancouver, Deans Knight Capital Management Ltd., a creditor of Shoeme, filed a petition on February 2 to appoint Alvarez & Marsal as receiver. Deans Knight claims it is owed U.S. $10.1 million from Shoeme. The parent company of Shoeme, 1006903 B.C. Ltd., and U.S. guarantors, separately owe bank Wells Fargo National Association U.S. $3.8 million, according to the petition. To fund the receivership, Alvarez & Marsal is allowed to borrow up to U.S. $500,000.
The sites were closed without alerting customers and customer service phone numbers have been disconnected. Media calls to the company and its founder, Roger Hardy, have not been returned.
Photo courtesy Shoes.com
