It is no secret that the retail industry is seeing its fair share of struggles this year and sneaker retailers, despite the hot category that it is, are far from immune to the pain.
Earlier this month it was reported that Shiekh Shoes, a chain based in Ontario, CA operating in 120 stores in 10 states, was seeking funding to avoid bankruptcy. Speaking to Reuters, founder and owner of the chain Shiekh Ellahi cited his company’s financial woes were due to issues with banks and suppliers.
In the past three years, Shiekh was required to remodel 61 of his stores (almost half of his chain) to meet the demands and design requirements set forth by brands that were sold in store that included big names including Nike, Adidas and Puma among many others. Just last month, Nike’s CEO Mark Parker said that the company would be reducing the number of accounts it would wholesale shoes to from approximately 30,000 to just 40.
Sneaker retail reckoning continues. West Coast chain Shiekh Shoes files for chapter 11 bankruptcy, owes more than $16M to Nike, per @WSJBankruptcy
— Sara Germano (@germanotes) November 29, 2017
First reported by Sara Germano of the Wall Street Journal, Chapter 11 Bankruptcy papers were filed today in U.S. Bankruptcy Court that included a list of creditors including Nike who is owed approximately $16 Million.
According to Ellahi, the company isn’t in default with any creditors or landlords but it is struggling.
We have reached out to Shiekh Shoes for comment and will update when we receive a response.
