Payless is discussing plans to shutter a significant portion, or even all, of its North American stores as the retailer plans for another bankruptcy, people familiar with the situation told Bloomberg. A Payless representative declined to comment on the matter.
This would mark the second time Payless has entered bankruptcy proceedings in two years. The shoe retailer spent four months in a Chapter 11 bankruptcy in 2017, emerging in August. The restructuring process included the closure of 700 stores and elimination of more than $435 million in debt, and CEO Paul Jones retired after its completion. The chain currently operates approximately 3,600 outlets worldwide, with more than 2,700 in North America.
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Payless is one of multiple retailers facing or emerging from bankruptcy in early 2019:
- Sears was saved from liquidation when a court approved Eddie Lampert’s $5.2 billion bid;
- Gymboree will close more than 800 stores in its bankruptcy proceedings, including all Gymboree and Crazy 8 locations;
- Things Remembered sold most of its business to Enesco, which will retain the online, direct mail and B2B retail businesses, as well as an undetermined number of stores;
- FULLBEAUTY Brands won court approval for its restructuring plan less than 24 hours after the company filed for Chapter 11 bankruptcy;
- Charlotte Russe has filed for Chapter 11 bankruptcy protection with plans to shutter 94 of its approximately 500 Charlotte Russe and Peek stores;
- Shopko will close 100 stores and auction off its pharmacy business as part of its reorganization plan; and
- David’s Bridal emerged from bankruptcy after shedding 300 stores and reducing its debt load by $450 million.
