Timonium MD
4-17-2023 4:16am

Local Retail Giant

Bankrupt Retailer Shoe City Is Closing After 74 Years, Owes Millions to New Balance, Puma & Timberland

By Stephen Garner, footwearnews.com

    Shoe City's flagship store in Owings Mills, Md.CREDIT: COURTESY

    Shoe City is going out of business.

    The Baltimore-based sneaker and streetwear retailer, with the official business name of Esco Ltd., commenced going-out-of-business sales on Thursday for all of its 39 retail store locations throughout Maryland, Virginia and Washington, D.C. with the help of Gordon Brothers.

    According to the advisory firm, the stores range in size from 2,000 to 9,900 square-feet and include street front, regional mall and strip center sites. The sales are expected to conclude by May 31, 2023.

    This move comes after the retailer, which also did business as “Your City, My City” (YCMC), filed for Chapter 11 reorganization at the U.S. Bankruptcy Court in Maryland on March 31.

    Shoe City’s redesigned Owings Mills interior as seen on December 12, 2011.CREDIT: COURTESY

    According to court documents, Esco Ltd. had an unpaid principal balance to a $12 million credit facility of $3.2 million as of March 28, 2023. The company also estimated in the filing that it owed $16 million in outstanding unsecured debt to vendors.

    Shoe City’s largest unsecured creditors include New Balance, which the retailer owes $1.596 million; Timberland, which is due $1.407 million; and Puma, which is owed $1.351 million. The retailer also owes Nike $664,023, Under Armour $622,697, Adidas $360,630, Fila $199,897, Asics $137,351 and Reebok $134,457.

    In the court documents, Stanley Mastil, senior director in Gavin/Solmonese, LLC, who has been appointed chief restructuring officer of Esco, FINISH READING HERE

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