The Rugged Bear Company, a New England retailer focused on children’s active wear, filed a petition for protection under Chapter 11 of the U.S. Bankruptcy Code due to its increasing liquidity constraints and a deteriorating relationship with some of its key landlords and vendors.
The filing will afford Rugged Bear an opportunity to close underperforming stores and to reorganize around its more profitable locations. Rugged Bear recently retained the services of Consensus Advisers, LLC, a Boston based financial advisor that is experienced in restructuring and reorganizing small companies like the children’s clothier, to aid it in the creation of a restructuring plan and to negotiate on its behalf with vendors and landlords.
“We appreciate the amazing loyalty of all of our Rugged Bear customers and employees who continue to support the company and the changes that have to be made,” said Garrett Larson, president and CEO of Rugged Bear. “It’s no secret that leases for stores negotiated even five years ago do not represent in many cases the economics needed to support a small retailer. We have the opportunity to make substantive changes to the basic and fundamental profit model of our store base.”
“We are most excited about the success of our new web presence where we continue to be amazed by double digit growth month after month,” Mr. Larson continued. “Its one of the absolute key aspects of our business model going forward.”
Rugged Bear also announced that board of directors member Bill End had previously decided to transition his role from board member to senior advisor to the company.
“By stepping down from the board and moving into an advisory role, Bill will be able to more effectively and directly apply his knowledge of and experience in the retail sector to the Rugged Bear team,” said Frank Jenkins, chairman of Rugged Bear. “We look forward to Bill continuing to work with us in this new capacity, and feel his guidance will be extremely valuable to the Company going forward.”
The Rugged Bear is a chain of 30 retail children’s clothing stores located in the Northeast US. For the last 30 years, Rugged Bear has offered high-quality, value-priced, durable and fashionable children’s active wear to families in New England, New York and New Jersey. The company offers an assortment of children’s clothing for all seasons from both private label and from well known third-party clothing and footwear companies, including Burton, Merrell and others.
