Another day in 2017, another big name store closes. Retailer Payless ShoeSource said on Tuesday that they filed a Chapter 11 protection suit. They plan on reconstructing their debt as they close down 400 stores in the U.S and Puerto Rico that haven’t been performing well.
Payless Inc will be joining the long list of retailers that have had to close in the U.S due to underperfomance. As more people continue to utilize the internet to do their shopping, it’s no wonder why some shops are calling it quits.
W. Paul Jones, the CEO of Payless, made a statement that although the decision the close down these stores was a diffcult one, it is needed.
Payless, whose headquarters is in Topeka, Kansas, filed assets in the area of $500 million to close a billion dollars. And they filed their liabilities from $1 billion to almost $10 billion in a St. Louis courthouse.
As of now, Payless has 4,400 stores in over 30 countries. They were able to reach and agreement with lenders to cut their debt in half.
What’s currently keeping the company afloat is the fact that banks have chosen to finance up to $385 million in debt-possision, which will allow the company to stay in buisness while they pay off their debt.
Payless has since spoken out saying that they are working assertivly to manage the stores that are to remain open. They are currently looking to invest in different areas and expand their brand to different countries.
So far across the U.S., Stores like Macy’s Inc, Sears, and even J.C. Penny Company have been trying to cut costs by closing hundreds of stores across the country.
Online retailers don’t seem to be having the same issues. With online markets such as Amazon.com Inc buying out companies, it’s looking as if more stores might follow Payless Shoe Source and others lead.