Is Shoe City Going Out Of Business? Have you heard about it? So, in this blog, we will talk about one of the prominent footwear retail stores in the U.S., i.e., Shoe City. This Shoe City is going out of business, but some of us don’t even know about it, and this news may have shocked them.
We’re so sorry to announce this sad news, and we do not intend to hurt you. We are disclosing this just to let all of you update us about outer things happening in the business world.
So, are you ready to know more about Shoe City and its closure? If yes, then without having much wait, let’s get started!
Before starting, we want to tell you what information this blog contains. It contains Shoe City Discontinuation, Why Is Shoe City Going Out Of Business, Who Bought Shoe City, How Many Shoe City Stores Are There, and more. If you are looking for a blog containing all this information, you have come to the right place! We’ve discussed everything about it in detail in this blog post!
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Is Shoe City Going Out Of Business?
Yes! Shoe City Is Going Out of Business. This Baltimore-based shoe and apparel chain is going away after serving for more than 70 years.
The company has decided to close all its locations; they have not decided to close only shoe city stores but also the online platform, i.e., ycmc.com, which has been shut down. The company announced it would shut down all its locations on May 31, 2023. So, May 31 will be the last day for Shoe City. Those who love to shop with Shoe City can make the most of the products sold at Shoe City before they leave the market.
Shoe City is a company that provides various types of products, including apparel, accessories, and especially deals in footwear and shoes. It became an organization that serves urban-inspired men’s, women’s, and children’s footwear, apparel, accessories, and many other products from a wide variety of consumer brands, including NIKE, Adidas, Puma, Vans, Converse, and many more across the country.
The company Shoe City is headquartered in Woodlawn Drive.
Regarding its network, the company has its own 39 stores in the United States, with most stores located across Virginia, Columbia, and Maryland.
According to sources, it was revealed that Shoe City owned its stores at different locations, and mostly its stores were in shopping centers such as Mondawmin Mall and Reisterstown Plaza in Baltimore, Valley Center in Owings Mills, Eastpoint Mall Parkway Crossing in Parkville, Edgewater Village in Edgewood, and many more are there.
Shoe City is not a small operation; it has around 39 stores and approximately 500 employees, of which more than 160 employees are full-time and over 200 are part-time. Besides, the company has many employees at its main corporate office and warehouse; it was believed that 333 employees were there in store locations…
Why Is Shoe City Going Out Of Business?
Now, we all know about Shoe City Closure; none of us is like, who doesn’t know anything about its closure? Right. But still, we are searching because we are curiously waiting to know why Shoe City’s closure. We assure you that this section may provide sufficient information about its discontinuation, and you won’t need to search for it further after reading this!
Shoe City’s downfall and its closure have greatly impacted employees and customers; further, you will get to know about its closure possible reasons:
One of the primary possible reasons for its discontinuation, it was believed that on March 31, 2023, the parent company filed for Chapter 11 bankruptcy in the United States Bankruptcy Court in Maryland. The company said we have assets and liabilities of around 10 million U.S. dollars to 50 million U.S. dollars and also reported that 16 million U.S. dollars are unpayable in unsecured debt. But all this case was published on April 7, 2023.
Another reason is its Financial Struggles; according to recent reports from WMAR2News.com, The company has been facing financial issues for years. It was depicted by the statement of the company’s chief restructuring officer that the company’s legacy ended, but they have not elaborated on the exact reasons behind this main cause. This pandemic impacted several other companies and locations and forced them to close their retail stores because of the economic uncertainty caused by the pandemic.
May 31, 2023, will be the end day for Shoe City’s all 39 stores but also for their employees who have lost their jobs with store closures.
We will not disclose how many workers will be affected, but if we see the company size, a huge number of employees must be impacted greatly.
Also, the customers who love to shop with Shoe City now have to find some other alternatives similar to Shoe City to fulfill their footwear needs.
Shoe City is going out of business because the company is struggling with financial issues, low sales, and net income, “unfortunately, after 74 years in business, the Shoe City legacy has come to an end.”
When the company filed for bankruptcy, the court documents showed, Shoe City was struggling for three years, and the retailers of the store did not receive the same order and stock from the key vendors, which means the company’s troubles worsened as time passed, i.e., about three years ago.
It was noted that in 2020, the company struggled with a massive loss of around 280,000 US dollars.
Again in the year 2021, Shoe City’s loss increased to 1,76 million U.S. dollars, which the company said: “had a significant negative impact on the Debtor’s financial position and liquidity.”
The problems did not end up but continued, and in the fiscal year 2022, the company faced low sales; compared to previous years, the store sales dropped by 8.5 million U.S. dollars.
In 2023, Shoe City failed and decided to make the tough decision to shut down all its 39 stores across the country because of the same problem happening in this current fiscal year, as the sales decreased by almost 5 million U.S. dollars through January.
In the end, the company stated, “Shoe City will never be able to regain profitability,” and all our efforts have gone in vain; we’re achieving nothing, “none of the company’s efforts to improve its cash position came to fruition.”
When ESCO, ltd. and YCMC filed for bankruptcy on April 3 in the Maryland federal court in Maryland. Also, Mastil stated, remains a family-owned business to this day as the equity of the Debtor is owned by family members and family trusts of the founders.”
YCMC.com stated, “We are so grateful and proud to have served your online shopping needs in recent years. But now we have decided to cease operations for YCMC; we know this is a difficult decision, but it has been taken for good.”
Who Bought Shoe City?
Shoe City is a family-owned company established as Eileen Shoes in 1949. But in 1980, the company has branded again to Shoe City. Esco is the official business name of Shoe City. The company’s Chief restructuring officer stated, “Unfortunately, after 74 years in business, the Shoe City legacy has come to an end.”
In the current fiscal year 2022, the company has been acquired by the parent company of the opposed retailer, The Athlete’s Foot, titled Arklyz Group. Shoe City is an athletic specialty footwear and lifestyle retail store owned by Arklyz. Baltimore-based sneaker and streetwear lifestyle shoe city retail store acquired by the Athlete Foot (TAF) and also its online platform, www.ycmc.com.
Later, they were defeated to close on the deal and left all. None of them were aware of this move. In the court filing, the chief restructuring manager said, “The proposed deal was full of synergies between two companies committed to their respective communities, loyal customers, and philanthropic initiatives.”
How Many Shoe City Stores Are There?
Are 39 stores located across Virginia, Maryland, and the District of Columbia. But all these stores will close by May 31, 2023.
Wrapping Up
The company operates going-out-of-business sales at all its stores, and the store size ranges from 2,000 to 9,900 sq. ft. that covers regional mall, street front, and strip center sites.
While announcing Shor City’s closure, the senior managing director at the company stated, “Gordon Brothers announced they will sell retail leases, and these leases provide a great opportunity for the retailers who are looking to elaborate their footprint.” and also added, “The store offer high- traffic locations with the most chosen and attractive co-tenancy and favorable lease terms with alternatives.”
In early April 2023, the prices at the stores went down, and these price reductions went into effect at all the locations. They also offered 30 percent off on the original prices of the athletic footwear and apparel or almost on the entire stock, including its new arrivals and branded items.
Not only going-out-of-business sales but all store fixtures are available for purchase, which are expected to close after May 31, 2023. Suppose you want more information about its closure or lease sale terms and conditions, lease sale deadlines, etc. You can check it out on its official website or e-mail at javallone@gordonbrothers.com or shaggard@gordonbrothers.com.
We hope you may get answers about Shoe City Closure in this blog. We appreciate your time!