Nader Corp and Alana, Inc., the parent companies of The Tannery and The Tannery Outlet store, announced they have filed for Chapter 7 bankruptcy. The proceedings come just shortly after the owners of the longtime Boston shoe store closed the outlet location.
Neither company has filed their detailed financial statements or summary of assets and liabilities, but bankruptcy court documents filed in Boston show that Nader Corp. reported assets for The Tannery of zero to $50,000, while Alana Inc. reported estimated assets for The Tannery Outlet of $500,000 to $1.0 million.
The companies’ creditor include well-known show brands, including adidas AG, Balenciaga S.A., Dolce & Gabbana SRL, Dr Martens Airwair Group Ltd, Deckers Outdoor Corp (NYSE:DECK), La Canadienne, Lanvin, Nike Inc (NYSE:NKE), Patagonia, Inc., and Valentino Fashion Group SpA. The Tannery also sells designer men’s and women’s clothing.
The Tannery is owned by Hicham “Sam” Ali Hassan, who is also the president of both companies. He has not made any public comment about the bankruptcy proceedings.
Chapter 7 is the most common type of bankruptcy filed in the U.S. Chapter 7 is a straight bankruptcy or liquidation and is the one that most people associate with the word “bankruptcy.”
In the event of a Chapter 7 proceeding, the court appoints a trustee to oversee the case, sell the assets, and distribute the money to the creditors who filed claims. The trustee does not take all of the money; the owner will be able to keep enough money to start again. However, in the case of The Tannery, the company may want to take a fresh approach to the business.
The Tannery might be Boston’s largest independent retailer of “Men’s & Women’s footwear, designer appareal, (sic) outerwear and accessories,” but the current troubles at The Tannery may have been on the wall for quite some time. For instance, the Tannery location in Cambridge’s Harvard Square closed in 2016.
Like other brick-and-mortar stores, regardless of size, The Tannery has been negatively impacted by changing consumer tastes, the ease of shopping online, and less expensive clothing and shoe stores.
The company has not exactly made a big effort to entice and engage online shoppers. It last made an appearance on Twitter back in November 2015. And despite having a Facebook page, the company does not have a stellar online reputation, with an overall rating of 2.5 out of five. The most common rating, at 26 votes, is for one star, citing the company’s terrible customer service and return policy.
Meanwhile, the bankruptcy trustee for both cases asked for court approval to sell the shoe and boot inventory of The Tannery Outlet store at a public auction. According to court documents, the sale, if approved, will take place on July 27.
“Welcome,” United States Bankruptcy Court District of Massachusetts, last accessed July 5 2017.
“About,” The Tannery web site, last accessed July 5, 2017.
“@ShopThe Tannery,” Twitter, last accessed July 5, 2017.
“The Tannery,” Facebook, last accessed July 5, 2017.