A group of major footwear players is taking action against New York retailer Shoe Mania Holding LLC.
The creditors, who have a combined total of $3.4 million in claims, filed a lawsuit in U.S. Bankruptcy Court in Manhattan on Friday to force the chain to declare involuntary Chapter 7 bankruptcy.
Among the footwear players named in the lawsuit are Puma North America Inc., Skechers USA Inc., New Balance Athletic Shoe Inc., VF Outdoor Inc., Clarks Cos., Earth Inc. and Mephisto Inc.
Shoe Mania has failed “to pay its debts owed to the petitioning creditors as such debts became due,” Lawrence Gottlieb, an attorney for the footwear firms, said in court documents.
Gottlieb told Footwear News on Friday that all the inventory had been cleaned out of the chain’s three New York stores several weeks ago and “there was brown paper on the windows.”
The companies petitioned 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 papers to force Shoe Mania Holding Inc. and Shoe Mania V LLC into bankruptcy.
According to court documents, Puma is the largest creditor, with a claim of $1.2 million.
A hearing on the matter will be held in Manhattan Bankruptcy Court on Tuesday.
Shoe Mania’s lawyer, Paul Sod, could not be reached for comment late Friday.