U.S. sneaker seller Shiekh Shoes LLC is searching for financing to avoid bankruptcy, its owner Shiekh Ellahi said on Friday, as increasing online competition has caused major upheaval for brick-and-mortar retail chains, Reuters reported. “We are struggling because of the situation with the banks and suppliers,” said Ellahi, who in 1991 founded the shoewear retailer that caters to so-called “sneakerheads” who collect funky and rare sneakers. Shiekh Shoes, which also sells streetwear apparel, has about 120 stores across 10 states stretching from California to Tennessee. If Shiekh Shoes’ attempts to find financing fail and the company files for bankruptcy, it would allow the retailer to exit its unprofitable leases, Shiekh said. Shiekh Shoes is talking to four to five banks about funding to avoid filing for bankruptcy, he said, adding that he is not in default with any creditors or landlords.
