Palm Beach Sandal Company, a luxury footwear brand based in Florida, has filed for bankruptcy. The filing appears to stem from a widening gap between the company’s assets and liabilities. Through the Chapter 11 process, the Florida-based brand aims to restructure its finances.
Palm Beach Sandal Company Files for Chapter 11
Palm Beach Sandal Company is proceeding with its bankruptcy through a Chapter 11 process. According to PACER, the Florida-based retailer appeared in the U.S. Bankruptcy Court for the Southern District of Florida on December 23 to file a voluntary petition.
Attorney Brian K. McMahon is representing Palm Beach Sandal Company in the case. Judge Erik P. Kimball is supervising the case of the footwear retailer in the bankruptcy court.
About the Luxury Footwear Brand
Palm Beach Sandal Company offers a variety of luxury women’s footwear that is completely handmade. The brand’s collections feature 100% leather construction and are designed to last for generations. The Florida-based retailer also sells apparel, women’s clothing, and accessories such as earrings.
The beginnings of Palm Beach Sandal Company go back to the 1960s when it was launched in a small workshop with a handmade anvil. Through the years, the luxury retailer was featured on the “O” List in Oprah Magazine and currently delivers its footwear across all 50 states in the country.
Palm Beach Sandal Company’s sandals are available in women’s sizes 5 through 12. For girls, the sizes are from 4 to 8.
Proceedings So Far
The official filing shows that Palm Beach Sandal Company submitted its petition on December 23 as a small business debtor under Subchapter V. On behalf of the Florida-based luxury retailer, attorney Brian K. McMahon filed the petition with a fee of $1,738. McMahon also submitted a corporate ownership statement on the same day.
Below are important details regarding the Chapter 11 filing of Palm Beach Sandal Company:
- Filing Date: December 23, 2025
- Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of Florida
- Type of Filing: Active, Voluntary Petition, Subchapter V
- Chapter: 11
- Case Number: 9:25-bk-25134
- Estimated Assets: $0 to $50,000
- Estimated Liabilities: $1,000,001 to $10 million
- Reason for Filing: Imbalance between assets and liabilities calls for court supervision
According to the filing, Palm Beach Sandal Company lists approximately 49 creditors. Among these creditors, the major one is Ray and Andrea Titus with a $750,000 loan. Bank loans and franchisee-related debt also contribute to the company’s liabilities.
The Florida debtor was given a notice for incomplete filings on December 23. These included a Chapter 11 case management summary, which must be filed three business days after the petition date, or one business day before the first scheduled hearing on any motion. The deadline for Palm Beach Sandal Company under Local Rule 2081-1(B) is December 30, 2025.
The final date for a Chapter 11 Small Business Documents and/or Subchapter V is December 30, 2025. A summary of assets and liabilities and certain statistical information must be filed by January 6, 2026. Schedules A/B, D, E/F, G, and H are due by the same date.
Other than these, the Statement of Financial Affairs and the Declaration for the Debtors’ Schedules must be submitted by January 6, 2026.
Judge Erik P. Kimball gave an order authorizing Palm Beach Sandal Company to continue its operations. Further, the Florida retailer was asked to close pre-petition bank accounts and open debtor-in-possession accounts.
After this, the Office of the U.S. Trustee filed a notice regarding the appointment of Aleida Martinez-Molina as Subchapter V Trustee in the latest case.
A meeting of creditors will be held on January 23, 2026, at 10:00 AM via telephone. The filing details of Palm Beach Sandal Company add that creditors must submit their proofs of claim by March 3, 2026.
As the Chapter 11 case moves ahead under Subchapter V, Palm Beach Sandal Company is expected to meet upcoming court deadlines. The company is expected to propose a reorganization plan as it continues operating under court supervision.
