New York retailer Shoe Mania is about a tenth of its way to repaying creditors.
Shortly after 11 a.m. in Saint Albans, N.Y., Thursday, a bulk lot of about 15,000 pairs of footwear held by the firm went under the hammer for $315,000, Richard Maltz, partner at clearinghouse David R. Maltz & Co., told Footwear News.
The winning bid was more than twice the court-approved stalking horse offer of $125,000. Brands sold included Puma, Cole Haan, Clarks, Skechers, Mephisto, Keen, Teva, Rockport, Merrell, Converse, Dansko, Ecco, Adidas, MBT, Diesel, Steve Madden, Lacoste, Nike and Timberland.
The bidder, a reseller that Maltz was unauthorized to name, is expected to pay Shoe Mania’s Chapter 7 trustee, Roy Babitt, in full on Friday.
All three of Shoe Mania’s corporate entities — Shoe Mania Holdings Inc., Shoe Mania LLC and Shoe Mania V LLC — were forced into Chapter 7 bankruptcy proceedings in a Manhattan court in August, by 10 footwear firms that are jointly seeking to recover $3.4 million in unpaid claims.
Throwing a wrench into the plan is the pre-petition claim of Bank Leumi USA, which loaned Shoe Mania $2 million and alleged it is still owed $1.9 million, including unpaid principal, interest and attorney’s fees.
The bank is also going after a sum of about $2.5 million from the surrender agreement associated with Shoe Mania’s store lease at 853 Broadway.