Bakers Footwear Group eyes case conversion; hearing set for Wednesday

By Caroline Salls

Pittsburgh, Jan. 14 - Bakers Footwear Group, Inc. asked the U.S. Bankruptcy Court for the Eastern District of Missouri to convert its Chapter 11 bankruptcy case to Chapter 7, according to a Monday court filing.

Bakers said it has not had committed funding for its operations since Dec. 21.

Lender Salus Capital Partners, LLC has funded significant company obligations, including payroll and related employee expenses, sales taxes, rent payments for January, utility charges and cure costs for assigned leases.

However, Bakers said it has not been able to pay other obligations, including those for inventory purchases, professional fees and the charges of its claims and noticing agent.

The company's estate is administratively insolvent, according to the motion.

Bakers said it expected administrative expenses to be satisfied with exit financing proceeds on the effective date of a plan of reorganization, while other expenses were expected to be paid with the proceeds of the company's post-bankruptcy financing.

The company said neither source of funding is currently available.

"Despite the exhaustive efforts of the debtor and the other principal parties in this case to effectuate a reorganization of the debtor or a sale of substantial assets, the debtor cannot sustain further operations in Chapter 11 in present circumstances," the motion said.

A hearing is scheduled for Wednesday.

Bakers, a St. Louis-based footwear retailer, filed for bankruptcy on Oct. 3. Its Chapter 11 case number is 12-49658.

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