Bakers Footwear Defaults on Loan, Files for Chapter 11 Bankruptcy

According to the Chicago Tribune, Bakers Footwear, which operates 215 women’s shoe stores in malls across the country, has filed for Chapter 11 bankruptcy.

The Bakers bankruptcy filing took place two weeks ago. The Chapter 11 bankruptcy will allow Bakers to remain in control of its business operations while searching for investors or buyers.

According to the Tribune, “Sales at St. Louis-based Bakers’ mall-based stores have fallen 5.9 percent from last year, squeezing the company’s cash and causing it to default on a loan.” According to the paper, Bakers has assets worth $41.9 million and debts of $59.5 million.

“Bakers’ weak sales this year pushed it into default on a $30 million secured credit facility it entered into in June with Crystal Financial LLC,” the Tribune reported. As part of the bankruptcy filing, the paper reports that Bakers must have a financial plan in place by November 2 or begin looking for potential buyers.

Individuals struggling financially can file for Chapter 13 and Chapter 7, which allows you to discharge debts like credit card debt and medical bills. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.

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