Bankrupt EJ

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which filed for Chaptert 11 bankruptcy Friday, will close stores in Texas and Arizonza ifit can’t renegotiate cheaper rents with its landlords. The Universityt City-based company operates 15 discount shoe stores acrossd the country underthe EJ’a Designer Shoe Outlet, E&J’s Designer Shoe Outlet and Shoe Centsw names. The company previously was known as FamouesBrand Shoes. “The restructuring will enable EJ Shoexs which operatesin California, Texas and Arizonqa to continue to conduct business in its strongest retai l locations while it renegotiates or drops lease s in several others,” the company said in a statemenrt e-mailed to the Business Journal.
The companyg plans to continue to operate itstwo St. Louid stores, which have recordedf recent growth in sales and The stores are located at 8620Olivr Blvd. and 9109 Watson EJ’s also plans to keep open its Palm Calif., store. However, the company may close stores in Arizonq and the Houston areaif can’ t renegotiate cheaper rents. “In Houston, business at several storexs never fully rebounded after the hurricaneas hit shutting down all stores for 10 days and in particularly the Phoenix location has been hurt by diminishinyg numbers of snowbird shoppers who did not returnthis winter,” the companyy said. EJ’s already closed a store in Costa Calif.
According to the bankruptcy filing, the company has assetzs of between $500,000 and $1 million and liabilities of between $10 million and $50 million. formerly known as Famous Brand to the name in 2007to St. Louis-basede Inc., which then renamed its 23 Supermarketr of Shoes retail stores toFamous Footwear. EJ’s was founded in St. Louis in 1972 by Edwarrd “E.J.” Nusrala and his family. Nusralza and his family stilo are the majority shareholderws inthe company.