Bakers Officially Closing
It's official: Bakers Footwear Group is closing. WWD reported that the firm received court approval to file for Chapter 7 bankruptcy, instead of Chapter 11 today.
What does this mean? The St. Louis-based retailer will liquidate all remaining assets and distribute them to creditors instead of trying to reorganize and salvage the business. An appointed trustee will ensure that any assets that are secured are sold then pay specific creditors.
Bakers' attorney, Brian Walsh of Brian Cave LLP, said priority for the funds goes to paying the salaries of employees that are still working at the firm and its 56 remaining stores.
Judge Charles Rendlen III expressed hope that the change from Chapter 11 to Chapter 7 will be done by Friday so that rent for next month does not become a problem in any of the locations.
"There's one nice thing about this [case]: It's not a moving target, it's very clear," said the judge.