Shoe stores are the biggest retail phenomenon in the world.
Now that stores have closed, a shoe store can’t do as well as before, and you may see a shoe at one, but that shoe can’t be purchased at another, either.
This was the case at the shoe store that has been closing in New York City, as the shoe retailer, Ecco Shoes, has been forced to shut down due to the financial consequences of the store’s closing.
According to an announcement from the New York Times, Eccos founder Paul Efron announced last week that Eccos would no longer be selling shoes in its stores.
The company, which was founded in 2002 by Efrons father, is owned by the Shoe Brand Group, which owns brands like Adidas, Reebok, and Adidas Originals.
Ecco Shoes was slated to reopen on Monday, but it closed its doors in September, with Efons son, Josh, taking over as CEO.
The move to sell shoes to the private equity firm is expected to close the store by October.
Efron, who owns a personal fortune of $9 billion, told the Times that the company had been struggling with the closing of its shoe stores, and that the store would be shutting down as part of its reorganization.
“I’ve seen the devastation it’s caused and the pain it’s inflicted on the people who have been working in the store and have been part of that community,” Eferson said.
“We need to find a way to move forward.”
Eferson added that the shoe stores will remain open, but will be sold to a private equity group.
Ecfron is expected leave the role in October.
According the Times, the decision to sell Ecco Shoe to private equity came after the company found out that Ecco had not been paid its promised dividends.
The retailer was not compensated for the months of earnings it had received.