The Athlete’s Foot Stores, LLC, owner of 124 The Athlete’s Foot corporate stores, filed a voluntary petition for Chapter 11 liquidation with the United States Bankruptcy Court for the Southern District Court of New York on December 9, 2004. Included with this filing is Delta Pace, LLC, a subsidiary of The Athlete’s Foot Stores, LLC.
The approximately 593 independent franchise stores operating under franchise agreements with Athlete’s Foot Brands, Inc. and the trademarks are not included in this action. Additionally, the bonds issued from a 2003 securitization transaction from an unrelated entity (Athlete’s Foot Brands, Inc.) are not related to the Chapter 11 filing.
President and CEO Robert J. Corliss offered the following: “We are confident this is the right thing to do. Despite tremendous investments of money and time, many of our corporate stores have not been profitable resulting in a lack of liquidity which led to the company taking this action. We believe this action will allow us to maximize the value of our assets for the benefit of our creditors and other interested parties. We appreciate the loyalty and support of our employees, customers and vendors.”
The company’s lender, GMAC, subject to certain conditions, has agreed to provide debtor-in-possession (DIP) financing to fund the liquidation process.
For full details of the bankruptcy filing, Sports Executive Weekly subscribers can access the full story at: TAF Story.
