Contact Information: CONTACT: Alexis Dilg Investor Information (805) 963-8727, ext. 1303 alexisd@bigdogs.com The Walking Company Holdings, Inc. 121 Gray Avenue Santa Barbara, California 93101 www.thewalkingcompany.com www.bigdogs.com
The Walking Company Holdings, Inc. Announces Chapter 11 Filing and Plan of Reorganization
| Source: The Walking Company Holdings, Inc.
SANTA BARBARA, CA--(Marketwire - December 7, 2009) - The Walking Company Holdings, Inc.
(PINKSHEETS : WALK ) www.thewalkingcompany.com; www.bigdogs.com) today filed
for voluntary Chapter 11 Bankruptcy Protection in Santa Barbara, CA. The
Walking Company is seeking to shed its unprofitable stores and emerge from
Chapter 11 in early 2010.
Early in 2009, The Walking Company implemented a major restructuring in
order to try to survive the difficult retail environment. As a result of
rapidly expanding its store chain between 2005 and 2008, the vast majority
of the lease rents for The Walking Company's stores are now, in the current
weak economic environment, at or above the market rates for malls across
the United States. While the restructuring was successful on most fronts,
The Walking Company was largely unsuccessful getting its landlords to
adjust the occupancy costs under its leases. Filing for Chapter 11 will
allow the Company to shed its unprofitable stores and emerge financially
strong and able to weather this tough retail cycle. The Walking Company
plans to file its plan of reorganization within the next few weeks.
"This action is an unfortunate but necessary and responsible step to
preserve The Walking Company's value for its secured creditors, vendors,
landlords, additional creditors and employees in light of the ongoing
challenging retail environment," said Andrew Feshbach, CEO of The Walking
Company. Feshbach stated further, "We believe our business model is
sustainable in today's world, despite declining consumer spending and mall
traffic at present. However, the unfortunate timing of our rapid expansion
caused us to enter into lease commitments at what now appears to be the
high water mark for retail space. The chapter process will allow us to shed
our unprofitable stores and go forward as a financially viable retailer."
The company's Chapter 11 counsel is Arent Fox LLP and the Company's
financial advisor is Clear Thinking Group LLC.
ABOUT THE WALKING COMPANY HOLDINGS, INC.
The Walking Company Holdings, Inc. (the "Company") consists of its The
Walking Company and Big Dogs subsidiaries. The Walking Company is a leading
independent specialty retailer of high-quality, technically designed
comfort footwear and accessories that features premium brands such as ECCO,
Dansko, UGG Australia, MBT and Aetrex, among many others. These products
have particular appeal to one of the largest and most rapidly growing
demographics in the nation. The Walking Company operates over 210 stores in
premium malls across the nation. Big Dogs develops, markets and retails a
branded, lifestyle collection of unique, high-quality,
popular-priced consumer products, including active wear, casual sportswear,
accessories and gifts.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995- With the exception of historical information, the matters discussed
in this press release are forward looking statements that involve a number
of risks and uncertainties. The actual future sales and other results of
the Company could differ significantly from those statements.