Thieves Market Files Petition to Reorganize

Thieves Market Inc., a 10-store Southern California retailer of boots and western wear, filed a Chapter 11 bankruptcy reorganization petition Wednesday.

President Richard Downes said his company is unable to pay off long-term debt, including back rent from stores the company shuttered in 1995.

“We had landlords breathing down our neck,” Downes said.

He said there are no plans to close any more stores or lay off any of its nearly 100 employees. The chain listed assets of $330,944 and liabilities of $7 million in its court filing.

To raise cash, the company has sold its headquarters on Wrigley in Irvine and plans to move its offices behind its Los Alamitos store. It also plans to hold a huge bankruptcy sale at its stores starting tomorrow.

Downes attributes the decrease in the stores’ business to the downturn in the Southern California economy in recent years and a general decline in demand for western wear.

Part of the company’s downfall was its ambitious expansion plan. In the late 1980s, Downes and his family planned to take the concept nationwide to 66 stores. Sales were up, and Thieves Market was one of the largest single accounts for boot makers, he said.

But by 1995, demand had dropped, sales were down and those plans faded. The company ended up closing nine unprofitable stores in Los Angeles, Riverside and Orange counties, including its original Long Beach store.

Downes said the existing stores are still profitable, barring the long-term debt. He added that Thieves Market will probably file a reorganization plan within the month. “We still have a huge base of customers,” Downes said.