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Published
Jan 19, 2020
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Payless emerges from second bankruptcy

Published
Jan 19, 2020

Topeka, Kansas-based footwear chain Payless ShoeSource has emerged from Chapter 11 bankruptcy for the second time. 


Twitter @PaylessInsider


The company filed for bankruptcy in February 2019, resulting in the closure of its last 2,500 North American stores. Previously, Payless had filed for Chapter 11 in 2017, shuttering nearly 700 stores and cutting $435 million in debt. 

Outside of North America, Payless operates a retail footprint spanning across Latin America, Southeast Asia and the Middle East, which are separate legal entities that weren’t impacted by the latest bankruptcy. 

In a press statement, the retailer announced that it has appointed a new executive management team and has prepared a new strategy to launch in 2020. 

The new team includes chief executive officer Jared Margolis, who previously served as president of CAA-GBG, and Justo Fuentes, who will lead the company’s Latin America arm, the company’s top market. 

As part of its comeback, company executives said Payless is gearing up for a relaunch in the United States.

“We intend to leverage Payless’ existing infrastructure, which is best in class and already includes product design & development, distribution, marketing, and a strong relationship with major footwear manufacturers,” Margolis said.

“Thus, providing the new Payless with the ability to be nimble, innovative, and to fast-track our biggest growth opportunity: The United States.”

In addition, the company said its revival will include collaborations with high-profile individuals and brands, as well as employing new technologies to streamline and optimize its customer experience.

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