Payless ShoeSource in Distress Is Closing Almost 400 Stores

Payless ShoeSource in Distress Is Closing Almost 400 Stores

1548
0
SHARE

Payless ShoeSource

Payless ShoeSource is the most recent retailer to fall on hard times claiming financial problems as it filed for Chapter 11 bankruptcy on Tuesday, April 4, 2017, in Missouri. The shoe seller spoke up about its being in distress financially causing for them to restructure, and close almost 400 of its stores immediately in the U.S. and Puerto Rico.

As people scramble to find if their favorite Payless ShoeSource store will be among the closing, the company announced that this may only be the beginning. It appears that as Payless works to organize its portfolio it may see fit to announce even more closures.

Payless ShoeSource Is Newest Brick and Mortar Casualty

Many brick and mortar retailers have been seeing tough times, as they struggle to fight for customers who have the ease to shop from the comfort of home. Payless ShoeSource follows nine major retail corporations, in the first quarter of 2017 alone, that have filed for bankruptcy. RadioShack, The Limited, J. Crew, and Gymboree have been joined by the huge department stores Macy’s, and J.C. Penney in declaring closures for this year.

Payless ShoeSourceWith lender support, Payless ShoeSource has the goal to cut its load of debt in half. As per court filings, the company will put efforts into building an online presence in order to continue operating. Payless has taken notice of the detrimental effect that depending on being only a brick and mortar has had on the company, leaving it with lower earnings and in debt.

The corporation’s chief executive W. Paul Jones made a thoughtful statement with a clear message of hope that Payless ShoeSource will bounce back.

This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify. We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process.

Payless ShoeSource was founded in 1956 in Topeka, Kan. It has since grown to 3,500 stores in the U.S. with a total of 4,400 stores globally and employs 22,000 employees. Leading up to the sudden announcement of immediate store closings, Payless ShoeSource had already closed 198 stores just ahead of the bankruptcy filing.

Payless ShoeSource Names Stores to be Closed

The company has long been a destination for shoppers looking for affordable sneakers, boots, and a variety of shoe styles. Accordingly, Payless ShoeSource has sold products by celebrities including Tyra Banks, Sam Worthington and, Star Jones. It is fitting that the show company calls itself the “largest specialty family footwear retailer in the Western Hemisphere,” as it has been the go-to shoe source for parents and children. In line with that, Payless ShoeSource holds agreements for licensing with children favorites Disney, Marvel, and Star Wars.

With the unexpected closing statement, it is causing thousands of employees and patrons of Payless to agonize scrambling to find out what stores are closing. In its financial distress, Payless ShoeSource has declared which of the almost 400 Stores will be closing and where they are. The largest number of stores shuttered will be in Texas, with 66 to close in that state.

It appears that California will have the second largest amount of closures set at 49, followed by New York with 22, and 17 in Florida. Eight other states will see a closing of more than 10 stores, with Alaska only seeing one store shuttering its doors. Eleven stores will be shutting down in Puerto Rico. To date, the plans include the of 389 Payless ShoeSource stores.

If the restructuring plans do not work, it is evident that the Payless ShoeSource company will have to make more closures. According to analysts, almost 400 stores scheduled to close due to financial distress make up $200 million of the footwear sales in the United States.

By Carol Ruth Weber
Edited by Cathy Milne

Sources:

The Washington Post: America is ‘over-stored’ and Payless ShoeSource is the latest victim
Forbes: Payless Shoes Joins Long List Of Brick-and-Mortar Retailers Seeking Refuge In Chapter 11
Market Watch: Want to know if your local Payless ShoeSource store is closing?

Featured and Top Image by Michael Rivera Courtesy of Wikimedia – Creative Commons License
Inset Image by Dwight Burdette Courtesy of Wikimedia – Creative Commons License

SHARE
Previous article2017 Pulitzer Prize Honors Journalists and Newspaper Staffers
Next article'Big Little Lies' Is True Modern Day Soap Opera
Carol Ruth Weber is a writer with a quest to spread wisdoms to all the world. She is known as a lifestyle influencer through her abilities as a wordsmith and communicator. With a constant thirst to learn and thrust herself fully into new endeavors, Carol truly believes in the must to live life to its fullest. Along the way, Carol honed her skills as a wordsmith to become a thought-provoking correspondent. With extensive experience in life, she has given her knowledge to the world through her writing. Carol actively writes on lifestyle including home, fashion, beauty, health, technology, travel, as well as reviews and high-profile interviews, along with relevant and breaking news items. Known for her head for thoughtful words as much as her head of curls, Carol’s objective is to write pieces that excite, inspire and stimulate.

NO COMMENTS

Leave a Reply