Davids Footwear was once synonymous with Toronto luxury retail, drawing well-to-do shoppers in search of the latest stilettos, sandals and pumps from the likes of Jimmy Choo, Christian Louboutin and Manolo Blahnik.But now the shelves at the tony Yorkville shop sit half empty, with signs highlighting deep discounts of the kind more often found at retailers like Winners. It’s a similar scene at the company’s four other stores, including one in Ottawa.Davids, which has been a Toronto institution since 1951, is going out of business, forced into receivership earlier this summer by Rosejack, an investment company controlled by Larry Rosen, CEO of fashion retailer Harry Rosen. According to court filings, Davids owed just over $9 million to Rosejack. Neither Rosen, Richard Markovitz — grandson of Davids founders Louis and Julia Markovitz — nor a representative from court-appointer receiver Richter would comment.“All forecasts and cash flow projections disclosed that the Company would continue to suffer further losses for a number of years and that the Company would require additional liquidity,” Rosen said in an affidavit filed in court, noting that Davids had lost $991,859 in the fiscal year ending Feb. 2, 2019. The company’s existing stock will be liquidated to give Rosejack a shot at collecting some of the $9 million it’s owed. Rosen also noted that three other shoe retailers have recently sought protection from creditors, including Rockport Shoes, Nine West and Payless ShoeSource.“Davids has not been immune from the challenges that the retail footwear business has encountered and continues to face,” Rosen said, adding that falling sales meant the company’s flagship location was paying rent that was more than 30 per cent of its gross revenues, roughly double the ideal percentage for a successful store.The end for Davids comes just two years after Rosen, through Rosejack, took over the storied shoe sto ...
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