Payless Is Said to Be Filing for Bankruptcy as Soon as Next Week
Retailer plans to initially close several hundred stores
(Bloomberg) -- Payless Inc., the struggling discount shoe chain, is preparing to file for bankruptcy as soon as next week, according to people familiar with the matter.
The company is initially planning to close 400 to 500 stores as it reorganizes operations, said the people, who asked not to be identified because the deliberations aren’t public. Payless had originally looked to shutter as many as 1,000 locations, and the number may still be in flux, according to one of the people.
Payless’s bankruptcy would add to a tumultuous year in retail, with several bankruptcies and hundreds of store closings -- even at companies that aren’t distressed. The industry is racing to try to adapt to more online purchasing and a shift away from mall shopping.
Payless was bought by private equity firms Golden Gate Capital and Blum Capital Partners in 2012 as part of the breakup of publicly traded Collective Brands Inc. The company, founded in 1956 in Topeka, Kansas, employs almost 22,000 people, according to its website. It has more than 4,000 stores in 30 countries.
Payless didn’t immediately respond to a request for comment.
To contact the reporters on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net, Jodi Xu Klein in New York at jxu205@bloomberg.net.
To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net.
