Bloomberg News

Shoe Mania Creditors Seek to Force It Into Bankruptcy

August 03, 2012

Shoe Mania LLC creditors with a total of $3.4 million in claims filed court papers seeking to force the Manhattan retailer into bankruptcy.

Clarks Cos., Cole Haan, New Balance Athletic Shoe Inc., Puma North America Inc., Earth Inc., VF Outdoor Inc., Mephisto Inc., Allrounder Inc., Skechers USA and Converse Inc. filed the involuntary Chapter 7 petition today in U.S. Bankruptcy Court in Manhattan.

Shoe Mania has failed “to pay its debts owed to the petitioning creditors as such debts became due,” Lawrence Gottlieb, an attorney for the creditors, said in court papers.

Bank Leumi USA sued Shoe Mania on July 24 in New York state Supreme Court alleging the company shut all three of its Manhattan stores earlier that month and moved the inventory without notifying the lender.

In today’s filing, the Shoe Mania creditors asked the bankruptcy court to appoint an interim trustee “to preserve the property of the estates or to prevent loss to the estates.” They also filed petitions to force Shoe Mania Holding Inc. and Shoe Mania V LLC into bankruptcy. Puma is listed as the largest creditor, with a claim of $1.2 million.

The Chapter 7 case is In re Shoe Mania Holding Inc., 12-13323, U.S. Bankruptcy Court, Southern District of New York (Manhattan). The Bank Leumi case is Bank Leumi USA v. Shoe Mania Holding Inc., 652551/2012, New York Supreme Court, New York County (Manhattan).

To contact the reporter on this story: Dawn McCarty in Wilmington at dmccarty@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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