Florsheim returns to the family fold
Under the terms of the agreement, Florsheim's U.S. wholesale business, an unspecified number of stores and some related assets will be sold to Milwaukee, Wisconsin-based Weyco Group for $47.3 million. The agreement will also see Weyco, a shoe manufacturer and distributor, assuming control of some of Florsheim's overseas subsidiaries, with lenders providing debtor-in-possession financing while the sale goes through.
Headed by Thomas W. Florsheim, the grandson of the Florsheim founder, Milton Florsheim, the Weyco family team has no prior business relationship with the Florsheim Group as it was sold by the family to International Shoe Corporation in the early 1950s. Once the sale has been completed, Weyco will integrate the Florsheim product range with its own portfolio of brands which includes Nunn Bush, Brass Boot and Stacy Adams.
As of Tuesday, the New York Stock Exchange moved to delist trading of Florsheim bonds, citing the bankruptcy application for its actions.
