Bootseller Freebird closes Cherry Creek HQ, 14 stores during crisis
The Denver-based bootseller Freebird faces financial crisis, closing stores and seeking buyer
Freebird, a popular bootseller based in Denver, has been forced to make drastic changes in response to a court-appointed caretaker taking control of the company. The company has laid off staff, closed its corporate headquarters in Cherry Creek, and is in the process of closing at least 14 of its 20 stores as it works to find a buyer.
The financial troubles began when Freebird was sued by KeyBank in May for allegedly not repaying $15.4 million. Since then, the company has been under the control of the turnaround company Ampleo, who revealed the dire financial situation Freebird is facing.
According to Ampleo’s Doug Charboneau, Freebird is in a severe liquidity crisis, owing $6 million to a manufacturer in Mexico that supplies the majority of its shoes. As a result, the manufacturer has gone out of business due to Freebird’s unpaid invoices.
Charboneau has taken swift action to address the situation, starting with the closure of underperforming stores and reducing staff. The company’s headquarters in Cherry Creek has already been closed, with furniture removed and computers wiped clean for auction.
One surprising decision made by Charboneau is that all new Freebird sales are final, with no products eligible for return. This move has left customers and employees in uncertainty about the future of the company.
Despite the challenges, Charboneau is actively seeking buyers for Freebird, with two potential buyers currently in negotiations under nondisclosure agreements. KeyBank supports Charboneau’s efforts to shrink the company in order to achieve the highest value return, although a full recovery is not expected.
Freebird, known for its handmade boots ranging in price from $200 to $400, was founded by CEO Mike Murphy in 2009. Murphy has declined to comment on the actions taken by Charboneau.
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