Private equity firm Charlesbank Capital Partners will acquire shoe retailer Rockport Co. for $150 million, subject to bankruptcy court approval, according to The Wall Street Journal. Rockport dropped plans for a bankruptcy auction of its assets because Charlesbank was its only bidder.
Rockport had filed for chapter 11 bankruptcy on May 14, citing a “costly and time-consuming separation” from former owner Adidas, according to Boston Globe. At the time, the retailer was $287 million in debt. Rockport’s biggest unsecured creditor is still Adidas, which claims it is owed more than $50 million, according to the Journal.
The Charlesbank deal includes Rockport’s wholesale business as well as its Asia and Europe operations and retail stores. Retailers in more than 60 countries carry Rockport shoes. Rockport has been winding down its North American retail operations, and is expected to complete the process by the end of July.
Charlesbank was named the stalking horse, or lead bidder, and would have led the bidding process for the bankrupt retailer. Under the initial agreement, Rockport will continue to offer its shoes through other retailers, which accounted for 57% of its sales. Charlesbank has stakes in other retailers, including Canada-based Shoppers Drug Mart.