Sneaker and apparel retailer Shoe City filed for Chapter 11 bankruptcy at the end of March.
The
company failed to regain profitability after a deal fell through that
would have seen Arklyz Group acquire the brand to build out its store
fleet and e-commerce platform.
- Shoe City took its current name in 1980 after being founded as Eileen Shoes in 1949.
- The company reported an operating loss of about $280,000 in Fiscal Year 2020, which grew to $1.76M by Fiscal 2021.
- Shoe
City agreed to a deal in May 2022 that would have seen it acquired by
Arklyz Group, the parent company of rival shoe seller The Athlete's
Foot.
- The deal never closed, and Shoe City could not regain profitability after the failed merger.
- She City's website and all of its stores are expected to stop operating by May 31.
