RICHMOND -- The Craddock-Terry Shoe Corp. is to meet with some of its creditors following the indefinite layoffs of nearly 1,000 employes in Virginia.
The 100-year-old company, Virginia's largest shoe manufacturer, began shutting down its factories Sept. 15, saying that the layoffs were temporary and that the company was for sale.
The company, which continues to sell shoes, says it is seeking a buyer. But all five plants in Virginia are closed and some longtime suppliers who are owed money by the company are concerned.
A meeting of the company's largest creditors was to be held today at the Drake Hotel in New York. Creditors were notified of the meeting last week by Summit, Rovins, Feldesman, a New York law firm that represents Craddock-Terry.
Craddock-Terry was a publicly traded company until April 1986, when it was bought by H&H Holdings, an investment company owned by Alan Salke of Beverly Hills, Calif., and Sidney Kimmel of New York. The investors paid $20 a share for the company, beating an offer from a group of the company's managers, who had proposed a leveraged buyout at $15 per share.
H&H paid $43 million for the company.