Shiekh Shoes LLC’s reorganization plan has become effective, and the retailer can add its name to the list of those that were able to survive a bankruptcy process without a liquidation, WSJ Pro Bankruptcy reported. Shiekh joins fellow footwear retailers such as The Walking Co. and Payless ShoeSource Inc. that closed a portion of stores under bankruptcy protection but continue to live on. For Shiekh, the key problems weren’t much different than those of its competitors that sought chapter 11 protection. Unsurprisingly, lack of liquidity and overexpansion were at the top of the list. The difference is that Shiekh faced those issues early on. “The big thing was identifying the issues early on that helped us achieve the goal of a restructuring,” said Asa Hami, an attorney from SulmeyerKupetz representing Shiekh. The company owed its secured lenders, including Comvest Capital, roughly $7 million on a senior secured loan, which it was able to repay once it found $16 million in bankruptcy financing, Hami said.
