The Walking Co. Files Bankruptcy

The Walking Co. Holdings Inc. (Santa Barbara, Calif.) has filed for Chapter 11 bankruptcy protection. This the second time the company has filed for bankruptcy in the past 10 years.

The filing is considered a pre-packaged filing, according to Women’s Wear Daily, because the key terms have already been negotiated and a reorganization plan has been submitted. Those terms and plans are subject to court approval.

The reason for this latest filing is being partly attributed to the termination of the company’s vendor relationship with Deckers Outdoor Corp. (Goleta, Calif.), which manufactures Ugg footwear. The company said that it could not replace the lost Ugg sales fast enough once that relationship ended.