68 864
Fashion Jobs
Asset Protection - Coordinator - Portland Distribution Center
Permanent · Portland
Asset Protection Detective, Carlsbad Plaza Camino Real - Full Time
Permanent · Carlsbad
Asset Protection Detective, Park Meadows - Standard Part Time
Permanent · Lone Tree
Asset Protection Detective, Woodbridge Center - Full Time
Permanent · Woodbridge Township
Asset Protection Detective, Fashion Valley - Full Time
Permanent · San Diego
Asset Protection Detective - Overnight, Herald Square - Flex
Permanent · New York
Asset Protection Detective, Mall of New Hampshire - Full Time
Permanent · Manchester
Asset Protection Security Guard, Bay Plaza - Full Time
Permanent · Bronx
Finance Analyst- Latam
Permanent · New York
Unassigned General Manager - Dallas West
Permanent · Denton
Loft Outlet - Five Oaks Part-Time Sales/Stock
Permanent · Sevierville
Assistant Manager, Operations | San Marcos Premium Outlet
Permanent · San Marcos
Assistant Manager, Operations | Scottsdale Quarter
Permanent · Scottsdale
Assistant Manager, Operations | Broughton st (Savannah, ga)
Permanent · Savannah
General Manager - Topanga Plaza
Permanent · Los Angeles
Senior Finance Analyst
Permanent · Portland
Key Account Manager - Macy's
Permanent · New York
Asset Protection Detective, Bay Fair - Full Time
Permanent · San Leandro
Asset Protection Detective, North Point - Full Time
Permanent · Alpharetta
Asset Protection Detective, Santa Rosa Plaza - Full Time
Permanent · Santa Rosa
Asset Protection Detective, West Covina - Full Time
Permanent · West Covina
Asset Protection Captain, Sunrise - Full Time
Permanent · Citrus Heights
Apr 5, 2017
Reading time
2 minutes
Download the article
Click here to print
Text size
aA+ aA-

Payless files for bankruptcy, shutters 400 stores

Apr 5, 2017

​Discount footwear retailer Payless ShoeSource said it had filed for Chapter 11 protection on Tuesday with a plan to restructure debt and immediately close 400 underperforming stores in the United States and Puerto Rico.

Payless ShoeSource - Project Casting

Filing Chapter 11 will allow the discount footwear retailer to restructure its North American entities and its Hong Kong supply chain. 400 of Payless's retail stores in the United States and Puerto Rico will shutter as an effort to reduce debt.

"This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify," Payless Chief Executive Officer W. Paul Jones commented.

The Topeka, Kansas-based company listed assets in the range of $500 million to $1 billion and liabilities of $1 billion to $10 billion in a filing with U.S. Bankruptcy Court in St. Louis. Payless said it had reached an agreement with two-thirds of its top lenders to cut its debt by 50 percent.

Privately owned Payless Inc announced in mid-January that it had brought on Guggenheim Partner's team of debt-restructuring specialists to help combat the footwear retailer’s slow foot traffic in stores. As part of this restructuring, Payless was advised to shutter 1,000 of its retail locations. Sources said the discount retailer was also facing $665 million in debt.

Existing lenders have agreed to provide up to $385 million in debtor-in-possession financing, allowing Payless to remain in business and pay its bills throughout the Chapter 11 process.

The company said that an $80 million new term-loan financing will allow it to emerge from Chapter 11 "well positioned for future growth and profitability post-restructuring."

Payless currently has 4,400 stores across the globe, with 3,600 of those located in North America. The remaining stores are franchised, located in Africa, Asia, and the Middle East. Following the store closures, Payless said it will "aggressively manage" its remaining real estate lease portfolio, while looking to invest in growth areas and expand in international markets such as Latin America.

Payless ShoeSource is the latest victim to fall as consumers are swayed away from malls by online retailers, increasing their online spending and drastically decreasing their mall visits. In the last six months alone, Gordman’s, BCBG Max Azria, The Limited, and Wet Seal. Bebe has made the decision to shut its brick-and-mortar business in favor of redirecting focus on its online retailing. 

Fitch Rating’s recent analysis on the retail environment has predicted that J.Crew, Sears, Claire’s, and Nine West will be the next to file.

With additional reporting from Reuters

Copyright © 2022 FashionNetwork.com All rights reserved.