Following the liquidation of 114 corporate-owned Athlete's Foot stores, Moody's Investors Service recently downgraded the shoe retailer's $30 million franchise fee securitization two notches to Baa3' from Ba2'.

The single-tranche 4.2-year offering closed in September 2003, via placement agent UCC Capital Corp. Late last year, Athlete's Foot filed for Chapter 11 bankruptcy, and announced that it would voluntarily liquidate a block of company-owned stores as part of the reorganization plan (see ASR, 1/17/05). The bankruptcy did not impact the roughly 600 remaining individually owned stores.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.