For the second time in two years, Payless Shoe Source has filed bankruptcy. Payless Inc., and it’s North American subsidiaries filed for Chapter 11 protection on Monday, one day after they announced a going out of business sale in the North American Stores.
In 2017 Payless filed for bankruptcy protection resulting from too much debt taken on in 2012 from a leveraged buyout. Payless has estimated liabilities of $500 million to $1 billion.
The Topeka, Kansas based company said it plans to close all 2,500 of their North American stores by the end of May 2019 to reorganize their debt. When the stores close, 16,000 employees will be out of jobs. Canadian stores will also be filing for bankruptcy protection. Approximately 370 Payless stores in 16 other countries will remain open and continue operations.
Payless claims to be the largest specialty footwear chain in the Western Hemisphere. The shoe store was founded in 1956 offering a self-service setting.
Chief Restructuring Officer Statements
“The challenges facing retailers today are well documented, and unfortunately Payless emerged from its prior reorganization ill-equipped to survive in today’s retail environment,” Stephen Marotta, appointed in January to serve as chief restructuring officer, said in a statement Monday. “The prior proceedings left the company with too much remaining debt, too large a store footprint.”
What Payless Closing Means to Consumers
North America stores will stay open until the end of March, with the majority open until May.
Ordering online is no longer available, but you can find some of their products on Amazon.com.
Payless has discontinued the rewards program and is no longer taking coupons.
Going out of business sales on all the merchandise at 20 to 40 percent off.
Gift cards will still be accepted up until March 11, 2019.
Anything purchased after February 19, 2019, will not be accepted as a return.
Finding jobs in retail is getting harder and harder with the many brick and mortar stores going bankrupt. Thousands of people are losing their jobs without new retail opportunities to transition to easily. If you lost your job or are struggling to pay your bills, contact a Dayton bankruptcy attorney to find out what options you may have to get a fresh financial start.