Rockport Group has filed for bankruptcy under Chapter 11 in the District of Delaware.
Rockport is sold through a number of Australian retailers including The Athlete's Foot and Mathers.
The US-based footwear company has confirmed it will operate business as usual as it undergoes voluntary restructuring. As part of the case, Rockport also intends to file a motion seeking authorisation to pursue a sales process.
Rockport has entered into negotiations with a potential purchaser which has "significant experience" in the industry, to serve as a stalking horse bidder.
Rockport Group CEO Gregg Ribatt has resigned from his position, while Joseph Marchese of PKF Clear Thinking has been appointed chief restructuring officer.
“The immediate relief of Chapter 11 is appropriate to provide the company the opportunity to assess the situation and develop a process to maximise value recoveries for all stakeholders,” Marchese said.
“Rockport has valuable assets that can be effectively administered in an organized joint process. I want to assure every employee, customer, creditor, contract party, investor and other stakeholders that we are going to conduct this effort with diligence, thoroughness and transparency.”
The company currently anticipates no disruption in service or product quality.
Subject to court approval, Rockport will operate utilising debtor-in-possession financing. This will provide Rockport with sufficient liquidity to continue its operations during the Chapter 11 case and related sale process.
Potter Anderson & Corroon LLP is serving as legal advisors to the Company in connection with the Chapter 11 proceedings. Stifel, Nicolaus & Co., Inc. and its affiliate Miller Buckfire & Co., LLC are serving as Rockport’s investment banker and PKF Clear Thinking as its restructuring advisor.