Shoes For Crews, LLC, the slip-resistant footwear brand based in Boca Raton, FL, has completed the sale of substantially all of its assets to its first lien-secured lenders via a stalking horse credit bid, marking its emergence from the Chapter 11 process.
Shoes For Crews said it right-sized its capital structure through the sale transaction, eliminating over $300 million in debt and providing the business with the operational flexibility to achieve its continued growth targets. The sale transaction reportedly includes establishing a new credit facility to provide additional capital to support the company’s growth investments and operation efficiencies.
“This successful transaction marks the start of our next era and provides us with the capacity to invest in growth across key markets and better serve our global customer base with best-in-class products,” said Donald Watros, president and CEO of Shoes For Crews. “As we celebrate our 40th anniversary on strong financial footing, we are introducing more innovative slip-resistant footwear lines to bring each employee home safely.”
Following the close of the sale transaction, ownership of Shoes For Crews and its international entities will transfer to a group of global investment firms (Investors). The company’s management team will reportedly remain and lead the business forward. The company also noted that the sale transaction would not impact its customers, key vendors, and employees.
As it looks to the future, the company said it is actively enhancing its operations and developing new product lines to address workers’ needs as it expands into new markets to meet growing customer demand.
Ropes & Gray LLP and Chipman Brown Cicero & Cole, LLP are legal advisors. Berkeley Research Group, LLC is the financial advisor. Solomon Partners Securities, LLC is the investment banker, and C Street Advisory Group is the strategic communications advisor to Shoes For Crews.
Paul Hastings LLP and King & Spalding LLP are serving as legal advisors and Ankura Consulting is serving as financial advisor to the Investors.
Image courtesy Shoes For Crews
