Bakers Footwear Group, which filed Chapter 11 in early October, began the liquidation of 150 of its 213 stores. The liquidations will cover $30 million of inventory. The company plans to seek financing that will allow it to operate its
remaining 63 stores.
The inventory was auctioned Nov. 5 to a joint venture between New York City-based Tiger Capital Group and Great Neck, N.Y.-based SB Capital Group. About 1,325 employees, including store and district personnel, were retained to assist the joint venture in operating the stores through the sales, which will run through the end of the year.
Merchandise is being sold for up to 50 percent off to start; the joint venture plans to sell the fixtures and equipment from many stores, as well.
The company has entered into a non-binding term sheet for a new debtor-in-possession credit agreement with a potential new lender and the company continues to attempt to secure the Replacement DIP Credit Agreement. However, the company can give no assurance as to whether it will obtain such new financing, or as to the terms or conditions, or obtain Court approval, prior to the court's Nov. 16, 2012 deadline.
