The Rockport shoe company, whose products are quite popular among yeshiva bochurim and yungeleit, has once again filed for Chapter 11 bankruptcy, marking the second time in five years.
According to court documents, despite a revenue of over $203 million in 2022, the company finds itself ill-prepared to withstand further economic challenges due to an insufficient liquidity cushion.
In the bankruptcy petition submitted to federal court in Delaware, Rockport has listed its liabilities and assets as ranging between $50 million to $100 million. The company owes nearly $47 million to its top five creditors, all of whom are vendors or suppliers. Additionally, the company carries almost $100 million in funded debt obligations, with about $61 million of that amount due in August.
Earlier, Rockport notified state officials about the possibility of closing down its Massachusetts headquarters, a move that could lead to the elimination of approximately 150 jobs, as reported by The Boston Globe.
Despite the bankruptcy filing, Rockport intends to keep its operations running throughout the Chapter 11 proceedings. The company operates on an international scale and boasts 30 distributor partners across more than 60 countries, with over 1,100 points of sale. Its inventory is sourced from various manufacturers based in China, India, Bangladesh, Vietnam, and Brazil. In 2022, these partners collaborated to produce a total of 4.8 million pairs of shoes, according to Rockport’s statement.
{Matzav.com}