From The Associated Press
ST. LOUIS —
Bakers Footwear Group on Wednesday filed for Chapter 11 bankruptcy protection citing weak sales and mounting losses.
The St. Louis company, which runs 215 shoe stores in 34 states across the country, ran low on cash and defaulted on one of its major credit agreements. Bakers filed in the Eastern District of Missouri.
It plans to continue an existing plan to reorganize the company by selling up to 52 leases to Aldo U.S. Inc., closing other stores and selling off merchandise from closed stores.
Pending court approval, the company has obtained financing that will allow it to operate while it restructures. Its 215 existing stores remain open and there are no changes to normal customer policies.