Corporate Bankruptcies Surged in June

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today, we're looking at the state of consumer bankruptcies since the start of 2024. Also, Johnston & Murphy is moving full steam ahead on its plans to attract new consumers by unveiling two newly redesigned stores and Nike rehires a former exec.

Here's what you need to know.

Eastern Mountain Sports, Bob’s, Express and More Retailers Fuel Consumer Bankruptcy Filings in First Half of 2024

Corporate?bankruptcies in June hit their highest level in a month since the start of 2020. And companies in the consumer discretionary category led the way in terms of filings for the first half of the year.

Seventy five U.S. companies filed for?bankruptcy?in June, according to data from S&P Global Market Intelligence. Year-to-date, corporate bankruptcies have surged to 346 which is a higher total than any comparable period in the last 13 years.

Bankruptcies in the consumer discretionary sector — which includes footwear and apparel — came in at 16 for the month. Since the start of the year, there have been 55 total consumer discretionary bankruptcy filings, making it the sector with the most bankruptcies year-to-date. Notably, outdoor and athletic gear retailers Eastern Mountain Sports and Bob’s Stores, which are both owned by GoDigital Media Group, filed jointly for Chapter 11 bankruptcy in June. In April, apparel retailer?Express?filed for bankruptcy?and started the process to close 106?stores. The company was one of three with more than $1 billion in liabilities that filed for bankruptcy in April.

The shoe angle: When it comes to footwear-specific companies, the U.S. based entities of slip-resistant footwear company Shoes for Crews (or Never Slip Holdings, Inc.) filed for bankruptcy in April in an effort to undergo a sale of its business. Last week, the company announced it has undergone a sale of its assets to first lien secured lenders via a stalking horse credit bid, thus emerging from Chapter 11 bankruptcy and eliminating more than $300 million of debt.

Johnston & Murphy Wants to Attract Younger Consumers With Revamped Mall Stores

Johnston & Murphy is moving full steam ahead on its plans to attract new consumers, this time by unveiling two newly redesigned stores.

According to the Genesco-owned footwear brand, it has revamped its locations at The Mall at Short Hills in Short Hills, N.J. and Twelve Oaks Mall in Novi, Mich.

“This is an exciting time for Johnston & Murphy,” Danny Ewoldsen, president of Johnston & Murphy, said in a statement. “Our sales continue to be on a strong growth trajectory, and we are seeing encouraging trends in retail.”

Ewoldsen also credited the resurgence in American malls with increased foot-traffic and occupancy rates rising as another reason for the company’s investment in the Short Hills and Twelve Oaks locations.

More updates are planned for store locations in Tysons Corner in Virginia and Scottsdale in Arizona as well as three airport stores in Miami, Philadelphia and Pittsburgh later this year. Plus, a new store at Chicago Midway will open this fall followed by the relocation of the Charlotte airport store to a larger space.

Nike Rehired a Retired Exec to Help Boost Wholesale Relationships

Nike continues to lean back into its wholesale partnerships — and enlisting the help of a former executive to get it right.

The Swoosh has rehired former senior executive Tom Peddie to the role of vice president of marketplace partners, Nike confirmed in a statement. The news was first reported by Bloomberg.

Peddle worked at Nike for 30 years, culminating in his role as vice president and general manager of North America, before he retired in 2020, the report noted. He rejoins at a critical time for Nike, which recently announced a renewed focus on the wholesale sector after pulling out of many doors in 2021 to focus on direct-to-consumer sales.

Big picture: Nike’s wholesale emphasis — one of a few key areas the sportswear giant is looking to improve — marks an interesting reversal from Nike’s DTC-focused strategy (“Consumer Direct Acceleration” CDA) that had been the brand’s North Star since June 2020. This plan involved zeroing in on DTC and digital channels and pulling out of some wholesale doors. In recent months, market watchers become increasingly skeptical of Nike’s progress with this plan, as the Swoosh re-entered or reinvigorated its wholesale partnerships with retailers such as DSW, Macy’s and Foot Locker.

Need more shoe news?

• Shein Invests 250 Million Euros in Circularity, Entrepreneurs in U.K., Europe Amid IPO Speculation
• Back to School Starts Early This Year as Parents Plan to Spend More
• Andrea Baldo, Former Ganni CEO, Replaces Thierry Andretta at Mulberry
• Canada’s Indigenous Culture Inspires New Arc’teryx Outdoor Collection That Connects Culture and Technical Design

Got a tip? Send us a confidential note here.

Want more? Sign up here to receive FN's daily newsletter directly in your inbox.