No Fear Retail Stores, Inc., which has 41 stores in California, Arizona, Nevada and four other states, announced that it filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of California.
Based in Carlsbad, CA, the stores target to motocross and surf markets. Its stores sell No Fear-branded clothing as well as Spy Optic and other brands. Other brands include So Cal, No Cal, Fearless, FMF, Gatorz, Hustler and Truth.
No Fear said in a statement that it initiated bankruptcy reorganization proceedings, together with its affiliated companies No Fear MX, Inc. and Simo Holdings, Inc., in order to restructure the company’s debt and re-align its business operations. The company intends to work with its creditors and other stakeholders to execute its reorganization through Chapter 11. No Fear stores will remain open and business will continue as the company moves through the reorganization process.
“Due to the state of the economy and the difficult operating environment within our industry, the company needs to re-organize its finances and operations,” commented Mark Simo, Chief Executive Officer of the Company. “We already have effected significant cost reductions and other changes to improve our business, including the closing of a number of under-performing stores.
“However, after careful consideration of available alternatives and after consultation with our legal and financial advisors, we determined that a Chapter 11 filing was necessary and in the best interests of the Company and its various constituencies, in order to make all of the changes that are needed. The filing allows us to continue operations as we seek to restructure our debt and other obligations in a controlled, court-supervised environment. We are committed to serving our customers and continuing with regular operations through this reorganization.”