Palm Beach files for bankruptcy, marking a sharp turn for the heritage footwear brand that once drew inspiration from former first lady Jacqueline Kennedy Onassis and dressed generations of sun-seeking shoppers.
The Palm Beach Sandal Company filed for Chapter 11 bankruptcy protection this week, according to court records, as it moves to reorganize its business amid mounting financial pressure.
Chapter 11 Filing Details
The voluntary petition was submitted Tuesday in U.S. Bankruptcy Court in West Palm Beach, Florida, under Subchapter V of Chapter 11, a provision designed to help small and midsize businesses restructure without the prohibitive costs of a traditional Chapter 11 case.
Court documents indicate the company expects funds to be available for distribution to unsecured creditors. The filing lists between one and 49 creditors, with estimated assets of up to $50,000 and liabilities ranging from $1 million to $10 million. The roster of the 20 largest unsecured creditors includes several loan claims, some of which are marked as disputed.
