Shoes For Crews® Successfully Completes Sale Transaction to Strengthen Financial Position and Advance Industry Leadership
01 July 2024 - 1:00PM
Business Wire
Company Receives Access to New Money Financing
to Invest in New Markets and Product Lines
Strengthens Financial Footing Through the
Elimination of More Than $300 Million of Debt
Shoes For Crews, LLC (together with certain of its affiliates,
"Shoes For Crews" or the "Company"), a global leader and pioneer in
slip-resistant footwear, today announced that the Company has
completed the sale of substantially all of its assets to its first
lien secured lenders (the “Sale Transaction”) via a stalking horse
credit bid. The Sale Transaction marks the Company’s emergence from
its Chapter 11 process.
Through the Sale Transaction, the Company right-sized its
capital structure, eliminating more than $300 million of debt and
providing the business with operational flexibility to achieve its
continued growth targets. The Sale Transaction includes the
establishment of a new credit facility that will provide additional
capital to support the Company’s growth investments and operational
needs.
“This successful transaction marks the start of our next era and
provides us with the capacity to invest in growth across key
markets and better serve our global customer base with
best-in-class products,” said Donald Watros, President and Chief
Executive Officer, Shoes For Crews. “As we celebrate our 40th
anniversary on strong financial footing, we are introducing more
innovative slip-resistant footwear lines to bring each employee
home safely.”
Following the close of the Sale Transaction, ownership of Shoes
For Crews and its international entities will transfer to a group
of top-tier global investment firms (the “Investors”). The
Company’s current management team will continue to lead the
business. The Investors, with whom Shoes For Crews has enjoyed a
longstanding and productive relationship, firmly believe in Shoes
For Crews’ business model, growth prospects, and industry
leadership, as demonstrated by their significant investment in the
Company.
Shoes For Crews’ customers, key vendors, and employees will not
be impacted as a result of the Sale Transaction and the Company
will continue to deliver its best-in-class slip-resistant footwear
to customers around the world. As it looks to the future, the
Company is actively enhancing its operational capabilities and
developing new product lines to address workers’ needs as it
expands into new markets to meet growing customer demand.
Advisors
Ropes & Gray LLP and Chipman Brown Cicero & Cole, LLP
are serving as legal advisors, Berkeley Research Group, LLC is
serving as financial advisor, Solomon Partners Securities, LLC is
serving as investment banker, and C Street Advisory Group is
serving as strategic communications advisor to the Company. Paul
Hastings LLP and King & Spalding LLP are serving as legal
advisors and Ankura Consulting is serving as financial advisor to
the Investors.
About Shoes For Crews®
Shoes For Crews® is a leading designer and manufacturer of
slip-resistant footwear, protecting millions worldwide.
Headquartered in Boca Raton, Florida, Shoes For Crews® began
producing slip-resistant footwear in 1984 with a mission to create
a safer workplace. The Company's focus is to deliver best-in-class
safety footwear with superior slip-resistant outsole technology,
unmatched comfort and on-trend styling through a complete line of
slip-resistant footwear designed to bring each employee home
safely. For more information, visit www.shoesforcrews.com.
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Media C Street Advisory Group
shoesforcrews@thecstreet.com