The Walking Company Holdings, which entered bankruptcy proceedings in December, should be able to keep 207 out of 214 of its stores. Originally the American retailer of comfort shoes sought to close about 90 stores, but it has since been able to negotiate lease agreements with its landlords to keep most of them open. The new leases will save the company about $3 million a year.
The reorganization plan will let the Walking Company pay off all of its debts and future obligations to trade creditors, allowing it to get out of bankruptcy in the spring. In addition, a group of investors led by Richard Kayne of Kayne Anderson Capital Advisors has pledged to invest $10 million to recapitalize the company. Wells Fargo Retail Finance will provide $30 million in exit financing.