Popular shoe brand Rockport collapses, CEO resigns

The brand best known for its lightweight casual and dress shoes will undergo voluntary restructuring as it battles to stay afloat.

Popular US shoe brand Rockport, known for its comfy casual and dress shoes inspired by running shoes, has filed for bankruptcy.

Rockport shoes are sold through a number of Australian retailers including The Athlete’s Foot, Mathers and the department store David Jones.

The US-based footwear company will undergoes voluntary restructuring under Chapter 11 bankruptcy.

The Chapter 11 bankruptcy filing means a company can temporarily retain its operations and attempt to restructure the business without the threat of creditors appointing receivers or liquidators.

The company focuses on lightweight, comfortable casual and dress shoes.

The brand has entered into negotiations with a potential purchaser which has “significant experience” in the industry, to serve as a stalking horse bidder, according to ragtrader.

Rockport Group chief executive Gregg Ribatt has resigned from his position while Joseph Marchese of PKF Clear Thinking has been appointed chief restructuring officer.

“The immediate relief of Chapter 11 is appropriate to provide the company the opportunity to assess the situation and develop a process to maximise value recoveries for all stakeholders,” Mr Marchese said.

“Rockport has valuable assets that can be effectively administered in an organised joint process. I want to assure every employee, customer, creditor, contract party, investor and other stakeholders that we are going to conduct this effort with diligence, thoroughness and transparency.”

Rockport is sold through a number of Australian retailers.

The father-and-son team of Saul and Bruce Katz founded Rockport 52 years ago, and focused on lightweight, comfortable casual and dress shoes inspired in part by running shoes.

Reebok reached a deal to acquire the business in 1986 for $US118 million and that’s where it stayed for three decades, including after Adidas acquired Reebok.

In 2015, Adidas sold Rockport to a joint venture between New Balance and Berkshire Partners, but the new venture didn’t find its financial footing and filed for Chapter 11 in 2018.

Charlesbank Capital Partners bought Rockport out of bankruptcy and tried to simplify its business, in part by closing its retail stores in the US while building its online presence.

But the Covid-19 pandemic weighed on sales and the retailer has struggled to rebound since.

News.com.au contacted Rockport Australia for comment.