The Walking Company emerged from Chapter 11 after its reorganization plan was approved in bankruptcy court in Santa Barbara, CA. Under the plan, the company will keep 207 of its former 210 locations. The company also expects to pay all of its debts and future obligations to trade creditors.
The company had negotiated new lease agreements with landlords for about 90 of its 210 stores in a move expected to generate annual cost savings of about $3 million. As a result, the retailer cancelled plans to close 90 stores it had set when it filed for bankruptcy in early December. The reorganization plan also stemmed from negotiations with banks, vendors, and shareholders to restructure its balance sheet and long-term financial obligations.
“Entering voluntary Chapter 11 protection with a plan and the continued support of our lenders enabled the company to emerge in an expeditious manner,” said Andrew Feshbach, Walking Company’s CEO.
The company’s common stock will continue to trade under the symbol WALK.PK.
