Shiekh Shoes Files for Bankruptcy After Owing Nike $16 Million USD
The brand had earlier been seeking funding to avoid filing for bankruptcy.
U.S retailer Shiekh Shoes has filed for bankruptcy. Earlier in November the company spoke to Reuters, with founder Shiekh Ellahi saying “we are struggling because of the situation with the banks and suppliers.” These issues included having to remodel over 61 of his 120 stores, with re-fits designed to match demands of wholesalers such as Nike, adidas, PUMA and more.
The Wall Street Journal‘s Sara Germano reported on Twitter that Shiekh Shoes filed for chapter 11 bankruptcy, citing that it owed more than $16 million USD to Nike amongst a host of other companies. The news comes just after Nike’s CEO, Mark Parker, said that the company would be massively cutting its wholesale accounts from around 30,000 to 40.
In more positive retail news, KITH has just opened a new store inside of Hirshleifers.