The athletic footwear sector has faced financial distress since the Covid-19 pandemic with several shoe retailers filing for bankruptcy, closing store locations, and sometimes going out of business.
Just weeks before the pandemic, giant shoe store chain Payless ShoeSource in January 2020 emerged from a devastating Chapter 11 bankruptcy it filed in February 2019 after closing down all 2,500 stores and its e-commerce platform. The company would instead focus on its international operations.
Footwear chains continued shutting down after the demise of Payless, as two more shoe store chains filed for bankruptcy in 2022 and 2023 and liquidated.
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Westbrook, Maine-based Olympia Sports filed for Chapter 11 bankruptcy in September 2022, liquidated its assets, and shut down.
Next, Baltimore-based Shoe City, which operated 39 stores in Maryland, Virginia, and Washington, D.C., filed for Chapter 11 bankruptcy in March 2023, liquidated, and shut down all stores.
Another huge athletic shoe retailer Foot Locker revealed in December 2024 that it would close 275 of its namesake locations by 2026 in addition to closing 125, or half, of its Champs Sports stores.
Foot Locker in 2023 also shuttered its Atmos shoe store operations in New York, Philadelphia, and Washington, D.C., and its website went offline. The Atmos chain had been successful in Japan and other parts of Asia, and the company wanted to focus on marketing the chain in those areas.
Swedish parent of global shoe chain Sneakersnstuff filed for bankruptcy protection in Sweden facing financial distress, the company revealed on Jan. 20.
Stockholm-based SNS AB closed retail stores in New York and Los Angeles, as well as a namesake bar in New York. The company still operates stores in Berlin, London, Paris and Stockholm.
Footwear makers file for bankruptcy protection
All of these shoe store closings and other macroeconomic problems have had some effect on footwear manufacturers as well.
Rockport Group in June 2023 filed for Chapter 11 bankruptcy and sold its assets to Authentic Brands Group.
Florida-based Shoes for Crews, a maker of slip-resistant outsoles for work shoes, in April 2024 filed for Chapter 11 bankruptcy to reorganize and sell its assets to its first-lien lenders. The company emerged from bankruptcy in July 2024.
Shoe chain Soleply files for bankruptcy
Popular athletic shoe retail chain Soleply filed for Chapter 11 protection to reorganize its business.
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The Cherry Hill, N.J.-based shoe store chain filed its Subchapter V petition on March 21 in the U.S. Bankruptcy Court for the District of New Jersey, listing $1 million to $10 million in assets and liabilities.
More bankruptcy:
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The debtor did not indicate any specific reasons for filing for bankruptcy.
Soleply currently operates six locations in six states — New Jersey, Pennsylvania, Connecticut, Maryland, Delaware, and Rhode Island.
The company’s stated mission is: “To become the streetwear industry leader by providing value to our community and setting the standard for the retail customer experience.”
The shoe chain specializes in premium sneakers and streetwear under top brands, including Nike Dunks, Air Jordan, ASICS Gel-Kayano, Adidas Yeezy, as well as high-end streetwear brands Fear of God Essentials, Denim Tears, and Bravest Studios.
In addition to footwear, the chain sells apparel, including, t-shirts, sweatshirts, jackets, hoodies, and denim pants.
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