83 Branches of Traffic Shoes Files for Bankruptcy

by San Antonio Attorney

Traffic Shoes sought for bankruptcy protection as its owner closes down stores and reorganize operational expenses.

The store, led by David Goodman, initially opened in 1989 in Miami before branching into 83 stores in different locations.

Traffic Shoes’ other auxiliary companies such as Goodman and Dominguez Inc, Traffic Inc., Traffic Plaza Del Norte Inc., and Traffic Laz Plazas Inc. have all filed for Chapter 11 bankruptcy.

The company said that increasing pressure from the proliferation of online stores prompted them to declare bankruptcy.

The shoe retailer, based in Medley, runs its operations in 83 mall stores across the state and in Puerto Rico.  It also has an online store that sells teenager fashion products at traffic shoe.com.

The bankruptcy filing stated that malls have been adversely affected by the increase of online shopping.  Stores have a hard time getting through young consumers in the teenage bracket due to their preference of modern technology and are more likely to shop online.

The bankruptcy filing statement pointed out that the purpose of filing for bankruptcy protection is to provide the debtors an opportunity for reconstructing the company and restore operational costs.  Some of the stores will also be closed in the restructuring.

Traffic Shoes employs 608 people, who are owed $300,000 in wages.  The company’s known creditors include: Forever Link International, which has an unsecured claim of $2.4 million; Hana Financial of California, which has an unsecured claim of $524,184 and New York-based Yoki Fashion International LLC, which has an unsecured claim of $226,036.

In 2015, the companies had a gross income of about $36 million but also owe $287,112 in total sales taxes.

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