The Denver-based bootseller Freebird has left its corporate headquarters in Cherry Creek, laid off staff, and is closing at least 14 of its 20 stores while it works to find a buyer.<\/p>\n
Freebird has been under the control of a court-appointed caretaker, the turnaround company Ampleo,\u00a0since being sued\u00a0by KeyBank in May for allegedly not repaying $15.4 million.<\/p>\n
\u201cThe receiver learned in the first few days that the company remains in a precarious financial situation\u201d and \u201ca severe liquidity crisis,\u201d Ampleo\u2019s Doug Charboneau wrote June 9.<\/p>\n
That includes owing $6 million to a manufacturer in Mexico that supplies 85% of its shoes. The bootmaker has gone out of business as a result of Freebird\u2019s unpaid invoices.<\/p>\n
\u201cWithout product being shipped to replenish inventory and without any apparent refinancing options remaining, the receiver had to take quick action,\u201d Charboneau explained in a receiver report to Denver District Judge Jill Dorancy, who appointed him May 20.<\/p>\n
On June 2, Charboneau \u201cstarted closing the worst performing stores, vacating its corporate office and reducing staff,\u201d he wrote. The receiver has begun closing 14 stores and will close another four on Monday if a buyer isn\u2019t found. That would leave just two stores.<\/p>\n
Charboneau declined to be interviewed about which stores are being closed and how many workers are out of a job. The company had four locations in Colorado when he was appointed: Its flagship in Cherry Creek and others in Boulder, Lone Tree and Castle Rock.<\/p>\n
\u201cNo comment,\u201d Charboneau told BusinessDen when asked. \u201cThe report speaks for itself.\u201d<\/p>\n
On June 6, the company\u2019s HQ at 2955 E. First Ave. in Cherry Creek was closed. Furniture was removed and computers were wiped clean so they can be auctioned off.<\/p>\n
In a move that may surprise customers, Charboneau has decided that all new Freebird sales are final and no products can be returned, according to his receiver report.<\/p>\n
KeyBank supports Charboneau\u2019s shrinking of Freebird, he says, \u201cas the best path to achieve the highest value return, but by no means is it anticipated to result in a full recovery.\u201d<\/p>\n
Charboneau has also been on the lookout for buyers for the company. Last week, he was \u201cin active negotiations with two\u201d who have signed nondisclosure agreements, he wrote.<\/p>\n
\u201cWhile a sale outcome remains uncertain, the receiver will continue to pursue that path in tandem with the receiver\u2019s store closure plan to reduce operational costs.\u201d<\/p>\n
Freebird boots are handmade and range in price from $200 to $400. CEO Mike Murphy, who founded the company in 2009, declined to comment on Charboneau\u2019s actions.<\/p>\n