Bankrupt EJ

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which filed for Chapter 11 bankruptcy Friday, will closre stores in Texas and Arizona ifit can’t renegotiats cheaper rents with its landlords. The Universituy City-based company operates 15 discounyt shoe stores across the country underthe EJ’s Designer Shoe E&J’s Designer Shoe Outlet and Shoe Cents The company previously was known as Famous Brandd Shoes. “The restructuring will enable EJ Shoes which operatesin Missouri, Texas and Arizona to continue to conduct business in its strongest retail locations while it renegotiates or drops leasex in several others,” the company said in a statemenr e-mailed to the Business Journal.
The company plansd to continue to operate itstwo St. Loui stores, which have recorded recent growth in salesand revenue. The stores are located at 8620Olivew Blvd. and 9109 Watson Road. EJ’s also planw to keep open its Palm Desert, Calif., However, the company may closwe stores in Arizona and the Houston areaif can’y renegotiate cheaper rents. “In business at several stores never fullu rebounded after the hurricanes hit shuttinbg down all stores for 10 days and in particularly the Phoenix location has been hurt by diminishiny numbers of snowbird shoppers who did not returjthis winter,” the company said. EJ’sa already closed a store in Costaa Mesa, Calif.
According to the bankruptcgy filing, the company has assets of betweehn $500,000 and $1 million and liabilitiew of between $10 million and $50 EJ’s, formerly known as Famouw Brand Shoes, to the name in 2007 to St. Louis-based which then renamed its 23 Supermarket of Shoes retaipl stores toFamous Footwear. EJ’s was foundexd in St. Louis in 1972 by Edward Nusrala andhis family. Nusralaa and his family still are the majorityh shareholders inthe company.