Payless ShoeSource to close all its United States stores, per report

Posted February 18, 2019

Reuters cites sources who tell them when Payless files for bankruptcy later this month, the chain plans to close all of its roughly 2300 stores.

The company first filed for bankruptcy in 2017 and closed 400 stores at that time.

The company said in an email that the liquidation doesn't affect its franchise operations or its Latin American stores, which remain open for business as usual.

The Wall Street Journal reported that the company is shuttering 2,100 US locations as it prepares to file for Chapter 11 bankruptcy protections.

According to the company, Payless employs more than 18,000 associates and has 3,600 stores worldwide.

Payless was established in 1956, based in Topeka, Kansas. It reorganized and cut millions of dollars in debt, but that doesn't appear to have been enough to save the company. Often these companies end up with a second bankruptcy soon after. Toys "R" Us and The Bon-Ton Stores are among the retailers that shut their stores in liquidations in the last 12 months. That's what happened with Gymboree and RadioShack.

Payless is just the latest brick and mortar retailer to fall victim to bankruptcy.

Shoppers are increasingly shifting their buying online or heading to discount stores such as T.J. Maxx to grab deals on name-brand shoes. Many retailers find themselves trapped in a cycle of continuing to chase consumer trends ...