Town Shoes Ltd. plans to acquire assets of Vancouver’s financially troubled Sterling Shoes Inc. for $17.5 million.
The company announced Monday that its subsidiaries Sterling Shoes GP Inc. and Sterling LP have entered into an agreement with Town Shoes to acquire the majority of Sterling LP’s assets. This includes a substantial portion of Sterling’s retail locations operating under the Sterling Shoes, Shoe Warehouse and Freedman banners.
The sale is subject to the approval of the BC Supreme Court under the Companies’ Creditors Arrangement Act. If approved, the transaction is expected to close on May 22.
“I believe that achieving this agreement presents the best possible outcome for the business,” said Sterling Shoes CEO Dave Alves. “By leveraging the core strengths of the unified organizations, we create significant opportunities for the business, employees and ultimately the customer.”
Town Shoes CEO Alan Simpson said, “We are very excited to welcome Sterling to the Town Shoes family. We look forward to growing the business with Dave and his team and are confident that together the combined company will go on to great success.”
In October 2011, it became apparent Sterling was in financial trouble when it announced it had sought creditor protection while it restructured, followed by the TSX announcing the company would be delisted.
In December 2011, Sterling announced it was closing 53 stores in B.C., Alberta and Ontario.
At the time, the company announced it would continue with five Freedman Shoes, 72 Shoe Warehouse and 28 Sterling stores.
