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wikipedia) Breaking News: Payless is closing all its US stores - News Paper
It’s unclear whether the retailer will file for bankruptcy.
Payless ShoeSource is closing all its US stores — 2,100 across the country and in Puerto Rico — and potentially filing for bankruptcy.
The company confirmed the news to CNN Business on Friday and announced the closures on Saturday. Liquidation sales began the following day and will continue through May, a spokesperson told CNN, though some stores will begin closing in March.
There are several reasons for Payless’s demise. As the New York Times notes, brick-and-mortar stores were the core of Payless’s strategy, which may have hurt sales now that a growing number of customers prefer to shop online. (It’s worth noting that in addition to closing its physical storefronts, Payless is shutting down its online store.) The shuttering of mall department stores across the country also hurt Payless — these bigger retailers serve as “anchor stores” that drive people to malls and other shopping centers, and closing them hurts foot traffic for smaller stores with more specific offerings like Payless. The discount shoe retailer also had trouble competing with other bargain stores, especially those that sell marked-down versions of pricey name brands, as well as with Amazon and Zappos.
It’s unclear whether the discount shoe retailer will declare bankruptcy in an attempt to reduce some of its debts, like Toys R Us and Sears did. (Toys R Us ended up liquidating anyway; Sears, meanwhile, was saved from liquidation by its former CEO, billionaire Eddie Lampert, whose mismanagement of the company was one of the main factors that led to its near-insolvency.) Payless previously filed for bankruptcy in April 2017 and closed 400 stores in the process, but as CNN notes, that move wasn’t enough to save the company from its dire financial situation.
Payless won’t be closing all its stores, though: A spokesperson told CNN Business that its international franchises and Latin American stores won’t be affected. If you live in the US, the next few months may be your last chance to grab a pair of Payless shoes. Unless you feel like catching an international flight, that is.
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Breaking News: Payless is closing all its US stores - News Paper
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Breaking News: Payless is closing all its US stores - News Paper
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Breaking News: Payless is closing all its US stores - News Paper
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