Another top Amazon brand files for bankruptcy!

Rockport, a 50-year-old leader in Amazon’s men’s shoe category, recently filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.

The company's risks were evident early on. In May this year, Rockport signed a non-binding letter of intent to sell some assets due to arrears in payments to many suppliers and loans from financial institutions. The company sold some assets to repay debts, but with little success.

Looking back, Rockport's performance has been unsatisfactory since the outbreak . In 2019, the company's revenue was $275 million; in 2020, revenue fell to $162 million. Finally, in 2022, revenue increased to more than $203 million, but the pressure brought by the epidemic has not eased.

The company has debts approaching $100 million, and owes nearly $47 million to its top five creditors. The top 30 creditors are mainly manufacturers and logistics companies in China, India and Brazil.

Jiuxing Holdings, a well-known domestic shoe manufacturer, is one of Rockport 's suppliers. Currently, Rockport and its affiliates owe the group about $24 million (about 170 million yuan) in outstanding trade receivables . The group's credit risk is insured, and the company is expected to receive about $8 million in insurance related to the Chapter 11 case, but this is not enough to cover the huge amount of debt.

The overestimated market, large amount of stockpiled inventory, but the reality of inflation and weak economic conditions undoubtedly dealt a fatal blow to Rockport.

Rockport , founded in 1971 , focuses on lightweight and comfortable casual shoes, formal shoes and some running shoes . It operates globally, has 30 distribution partners in more than 60 countries and regions offline, and is working together on online platforms such as Amazon and Walmart. The total output in 2022 will exceed 4.8 million pairs .

Initially, Rockport had several physical retail stores in the United States, but after the company's first bankruptcy sale in 2018, the company reorganized, expanded its supply of leisure products, closed 60 physical stores in the United States, and shifted to an e-commerce retail model, performing better and better on platforms such as Amazon.

On Amazon, Rockport 's popular products have thousands and tens of thousands of reviews, making it a top brand on the platform; on Walmart, it is also a best-selling brand of casual men's shoes.

Looking at the US market, well-known local brands have declared bankruptcy and closed down one after another since the outbreak. The cross-border e-commerce market is sluggish, and in the context of inflation and cost crisis, consumer demand is gradually decreasing, and companies are struggling to survive. Even big sellers cannot be immune to this, and small and medium-sized sellers should adjust their strategies, control risks, and operate in a refined manner, taking steady steps and keeping their feet on the ground.

Amazon

Rockport

Men's Shoes