Bakers Footwear Group Inc. on Wednesday filed for Chapter 11 bankruptcy court protection in St. Louis.
In doing so, the firm defaulted on a $30 million secured credit facility that it obtained in June with Crystal Financial. Crystal provided debtor-in-possession financing of $22 million, but required that a restructuring plan be in place by Nov. 2, or the retailer will have to find a buyer.
Baker went public in 2004. Investors in the firm include Steve Madden Ltd., and Peter Edison, the firm’s chief executive officer, who once served in various positions at Edison Brothers Stores Inc. The bankruptcy is expected to render shares of Baker worthless, the company said.
While footwear is its primary category, the retail chain also sells some accessories. The company caters primarily to young women. It has been closing stores, but continued to get hurt by weak sales throughout the year.
The company operates 215 stores in 34 states.