Turkey's leading shoe retailer, Arrow, has been officially declared bankrupt, according to an Istanbul bankrupt office.
The shoe retalier Arrow, based in Istanbul's Ginza Lavinya Park mall in the district of Beylikdüzü, was declared bankrupt by 1st Commercial Court of First Instance on June 23, Bakırköy bankrupt office said on Monday.
The judge's decision ended a two-year battle for survival after the company was accused of putting carcinogenic shoes on the market in 2014.
The Court has ruled for appoinment of a trustee and a preliminary injuction to the debt-stricken retalier in March 2015 in a response to Arrow's request to suspend its bankruptcy.
The then Customs and Trade Minister Nurettin Canikli has warned that carcinogenic substances were discovered in more than 30,000 shoes during the routine controls in customs. “We have decided to destroy them. The matter is that these products are sold to the domestic market illegally," Canikli said in November 2014.
The retalier officials said that Arrow has been trapped in debt because of the ministry's investigation in connection with the claims of carcinogenic shoes. They have then filed a lawsuit in a response to the investigation.
During the investigation, the ministry's inspectors have determined that 19,930 of 33,000 pair of carcinogenic shoes have been sold by Arrow to the market. The sale of 2,368 pair of shoes has been banned at 42 outlet stores in 28 provinces in a countrywide crackdown against the shoe retailer which has also faced a fine of 266,000 TL.
The company has also closed its accounts on the social media and is banned from doing retail business.
Bankruptcy curators are now expected to investigate all possibilities for a resume, which may include the retailer company being sold partially or in its entirety.
Arrow, known to be the first Turkish shoe trademark sold in China, has employed 312 workers at 43 stores in 31 provinces. It has been
active since 1987.
