Sneakerhead retailer Shiekh Shoes revealed Friday it is taking steps to avoid bankruptcy.
In an interview with Reuters, owner Shiekh Ellahi said the company is struggling to compete with online competition. Ellahi confirmed that the company is talking to four to five banks about funding to avoid filing for bankruptcy. He added that the business is not in default with any creditors or landlords.
The brick-and-mortar retailer, which has about 120 stores in 10 states, recently upgraded 61 stores to meet brands’ demands to have their product showcased in more premium environments. The company also added streetwear when it acquired e-commerce site Karmaloop last year.
Ellahi added that he hopes to negotiate breaks on rent outside of bankruptcy and invest in more remodeling.
If Shiekh Shoes’ attempts to find financing fail and the company files for bankruptcy, it would allow the retailer to exit its unprofitable leases, Reuters reported. Ellahi said the company should know the outcome of its attempts later this month.