Women’s footwear company Aerosoles has filed for Chapter 11 bankruptcy in Delaware, the company announced Friday.
The nearly 30-year-old Edison-based company will continue to manage its stores and operate its businesses.
“This restructuring will enable Aerosoles to become a stronger, more vibrant brand, and position the company for future growth,” said interim CEO Denise Incandela.
The restructuring will include closing many of its 88 retail stores worldwide.
The company will maintain four flagship stores in New Jersey and New York. Orders also can still be made online.
There is a toll-free hotline that customers and employees can call with questions. In the United States, the number is 844-858-8887. International callers can access the hotline at 646-757-8472.
“By improving our financial structure and rightsizing our retail footprint, we will be able to refocus our business efforts on the execution of our turnaround strategy,” Incandela said. “ We will continue to create product that leads the market in comfort and fashion, grow our e-commerce, wholesale and international businesses, and promote innovative new marketing campaigns that will drive our business forward.”
Aerosoles’ bankruptcy filing includes motions for immediate relief, allowing it to make necessary payments to employees and suppliers that will allow business to continue uninterrupted.
Those include authority to make wage and salary payments, continue various benefits for employees and honor customer programs like gift cards and customer loyalty incentives.
The restructuring is expected to take about four months.
“We sincerely appreciate the tremendous efforts of our employees and our partners as we work through the restructuring,” Incandela said. “This process will allow us to emerge as a stronger brand and company and reinforces our commitment to providing a superior shopping experience in stores and online.”