Rockport announces asset purchase agreement with Charlesbank

By

Cassidy Mantor

Published
May 14, 2018

Footwear entity The Rockport Group announced CB Marathon Opco, LLC an affiliate of Charlesbank Equity Fund IX, purchased its assets in a voluntary Chapter 11 bankruptcy filing today that allows Rockport to continue ops.

In a statement released today announcing the Chapter 11 filing in Delaware bankruptcy court and the asset purchase agreement, Rockport said the transaction "provides a clear path forward for the company by focusing on its global wholesale, independent and e-commerce operations."

The agreement provides that Charlesbank will pay certain Rockport vendors in order to maintain long-term relationships with vendors and suppliers, and enable continued success for the brand. In addition to acquiring Rockport's US and Canadian business, Charlesbank will also acquire Rockport's global wholesale assets, e-commerce platform and retail operations in Asia and Europe.

No decision has been made regarding Rockport store locations at this time. Charlesbank will evaluate the company's North American retail ops and determine whether it wants to pursue acquiring certain locations in the future. As of now, Rockport is seeking a court order authorizing it to close any North American retail stores that are not acquired by Charlesbank.

Currently Rockport has $80 million in financing that will allow it to continue operations through the sale process, including paying employee wages and benefits, and honoring customer commitments. While the sale is going on, customers can continue to shop the brands at department stores and specialty retailers, as well as at the company's retail stores and e-commerce site.

Charlesbank is acting as a "stalking horse bidder" whose deal is subject to several conditions which include higher and better offers. Financial terms of the asset purchase agreement were not immediately disclosed.

The Rockport Group was founded in 1971 and is parent company for men's and women's footwear brands Aravon, Dunham and Rockport. It is headquartered in Boston.

Details about specific store closures will be provided by Rockport at a later date.