Bankruptcy Judge Charles E. Rendlen III said he would convert Bakers Footwear Group Inc. chapter 11 case to a liquidation under chapter 7 now that the shoe retailer has launched going-out-of-business sales at all of its stores, Dow Jones DBR Small Cap reported today. The 88-year-old chain last week won permission to hold liquidation sales at its remaining 56 stores after seeing its reorganization plan collapse and a last-ditch sale effort fall apart. The company said that it was necessary to hand over control of its estate because it was administratively insolvent. The company, which had 216 stores nationwide when it sought chapter 11, has not had committed funding for its operations since Dec. 21, according to court papers. It has been unable to pay for things such as inventory purchases and professional fees, it said.
