Shoes for Crews’ DIP, bid procedures draw U.S. trustee objection

By Sarah Lizee

Olympia, Wash., April 23 – Shoes for Crews, LLC’s motions seeking final approval of a $120 million debtor-in-possession financing package and approval of bid procedures for its assets drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Vara said the DIP and bid procedures motions seek to truncate the 75-day challenge period by requiring a party in interest to notify the debtors of their intent to investigate and pursue a challenge prior to the auction date; and terminating the challenge period as of the sale hearing date.

“There are no unique facts and circumstances in this case justifying the shortening of the challenge period for cause, and therefore such request should be denied,” the U.S. trustee said in the objection.

As a reminder, the company is also seeking approval of a stalking horse agreement with its prepetition first-lien lenders. The proposed purchase price includes a $290 million credit bid of the DIP financing debt and prepetition first-lien debt.

The proposed timeline includes a bid deadline of May 17, a May 21 auction and a May 31 sale hearing.

The Boca Raton, Fla.-based company filed bankruptcy on April 1 under Chapter 11 case number 24-10663.

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