Payless ShoeSource files for bankruptcy, plans to close stores
TOPEKA, Kan. - Payless ShoeSource filed for Chapter 11 bankruptcy protection late Monday.
The company plans to close all of its stores in the U.S. and Canada, according to USA Today. This is the second time Payless has filed bankruptcy in as many years.
Reports say the company has already ended online sales.
Liquidation sales were set to begin as soon as Sunday. Officials say some stores will be closed by the end of March, while "many" will remain open through the end of May.
"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," said Payless Chief Restructuring Officer Stephen Marotta. "The prior proceedings left the company with too much remaining debt, too large a store footprint and a yet-to-be-realized systems and corporate overhead structure consolidation."
The retailer expects to honor gift cards and store credit through March 11.