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.
