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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.

A Brand Rooted in American Style

According to the company’s website, the original Palm Beach sandal was designed in 1964 for Jacqueline Kennedy Onassis, a detail long woven into the brand’s identity. Each pair is still handmade, crafted from 100% tanned leathers and kidskins, with thick, shaped soles designed to mold to the wearer’s feet over time.

Women’s sandals are priced between $158 and $198, while girls’ styles sell for about $95. Customers can personalize their footwear with monograms or embroidered tropical motifs, and the brand also offers a curated line of apparel and accessories.

Operations Continue Despite Filing

Despite the bankruptcy filing, the company says it has more than 2,000 pairs of sandals in stock. Customers can still visit its factory and workshop at 1027 North Florida Mango Road, Suite #6, in West Palm Beach, Monday through Thursday.

The brand also operates guest boutiques along the Vias in Palm Beach, located east and west between the Atlantic Ocean and the Intracoastal Waterway, according to its website.

Footwear Industry Under Strain

Palm Beach’s filing comes amid a broader shakeout in the footwear sector. This year alone, sneaker reseller Soleplay shuttered four stores, while children’s shoe retailer Amiga Shoes filed for Chapter 7 liquidation. Overseas, Swedish footwear label Eytys, known for chunky silhouettes, entered bankruptcy proceedings in Stockholm in early 2025.

In the U.S., handmade boot brand Freebird closed 14 locations earlier this year. The Colorado-based company, whose boots sell for $200 to $400, had been under a court-appointed receiver since May after defaulting on a $15.4 million debt owed to KeyBank. Freebird was sold in August for $500,000 to a private equity firm and was later reacquired this month by former CEO Jonathan Czaja through Freewheel Capital, according to his LinkedIn post. Czaja previously served as vice president of operations at Stitch Fix from 2015 to 2018.

Looking Ahead

Restructuring expert Michael Appel told Footwear News earlier this year that additional financial strain is likely ahead. He warned that more vendor distress could emerge in 2026, driven in part by challenges companies faced this year related to reciprocal tariffs under U.S. President Donald Trump.

For Palm Beach Sandal Company, the Chapter 11 filing represents both a reckoning and a lifeline — an attempt to steady a legacy brand before the tide fully turns.