Moneysworth and Best files for bankruptcy

Shoe repair and retail chain Moneysworth and Best Shoe Care Inc. filed for bankruptcy yesterday, struggling under $8.9-million in debt against just $4.3- million in assets.

The Globe and Mail
July 12, 2000

Moneysworth and Best files for bankruptcy
Roma Luciw

Shoe repair and retail chain Moneysworth and Best Shoe Care Inc. filed for bankruptcy yesterday, struggling under $8.9-million in debt against just $4.3- million in assets.

Moneysworth, which opened its first shoe-repair store in 1984, has been financially troubled for some time. The Toronto-based company said in May it would not meet its deadline to file its 1999 year-end financial statements and it was trying to restructure its debt.

In documents filed with the receiver’s office yesterday, Moneysworth reported secured debt of $5.6- million and unsecured debt of $3.3- million.

Chief executive officer Rick VanSant could not be reached late yesterday for comment. PricewaterhouseCoopers Inc. was appointed trustee in bankruptcy.

For the nine months ended Sept. 31, 1999, the company’s revenue was $17- million.

The company has struggled since it purchased U.S. rival Acdor Products Inc. in January, 1999, for $3-million in shares and $2.9- million in cash.

Moneysworth was in red ink last year. At the time, Mr. VanSant blamed the company’s weak balance sheet on the acquisition. Last summer, he said the acquisition costs were high for a company of its size. For the first nine months last year, Moneysworth lost $1.25- million on revenue of $11- million.


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