Earlier this year, rumours of trouble for Payless began circulating, with Bloomberg noting that the affordable family footwear retailer was looking to restructure due to massive amounts of debt and may have to close up to 1000 stores. And now, the company has filed for Chapter 11 bankruptcy.
In a press release, Payless called the move a “Path forward to enhance [the] company’s growth profile and profitability.” The restructuring includes all of Payless’ North American entities and two Hong Kong-based entities. The retailer plans on immediately closing nearly 400 underperforming locations in the U.S and Puerto Rico. There have been no announcements on closures for Canadian stores yet, though Payless’ restructuring plan does include expanding in areas they believe will provide sustainable growth, like Latin America.
Payless plans on providing a list of all the locations that are closing, which you can view here.
Are you surprised by the Payless bankruptcy? Let us know in the comment section.
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