Converse Files for Chapter 11 Bankruptcy

Converse Inc., maker of the classic Chuck Taylor canvas high-top sneaker, said it filed for Chapter 11 bankruptcy protection in Delaware and planned to reorganize by shipping the rest of its production to Asia and slashing about 1,000 of its 1,200 jobs. Converse is seeking court approval to eliminate three manufacturing plants in North America by March and to shift production to suppliers in Asia, essentially leaving the business to focus solely on licensing. The plants are in Texas, North Carolina and Mexico. Converse’s flagship product is the Chuck Taylor All Star sneaker, which has defied change and has defined cool for decades. The company estimates it has made about 575 million pairs of the high-tops with the star on the side. Shares of Converse closed up 3 cents at 20 cents on the over-the-counter electronic bulletin board.