Payless Filing Chapter 11

Update: On April 4, 2017, Payless’ North American entities, as well as two foreign Hong Kong-based entities involved in logistics (CBL) and supply chain (DAL), filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri to facilitate the financial and operational restructuring necessary to strengthen its balance sheet and position the Company for long-term success. Payless is also filing for recognition of the U.S. Chapter 11 proceedings under Part IV of the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice.

The following was posted on March 27th, 2017:

Is Payless filling Chapter 11?

Back in January, Reuters reported that Payless was trying to manage $665 million in debt and was "considering several options."  More recently, according to Bloomberg, people familiar with the matter have suggested that the struggling retailer could possibly pull the trigger on bankruptcy filing soon.  Earlier this month, a source familiar with the matter told Footwear News that Payless was expected to file for Chapter 11 protection in April.

According to their website as of today, "Payless ShoeSource is the largest specialty family footwear retailer in the Western Hemisphere, offering a trend-right and comprehensive range of everyday and special occasion shoes and accessory items at affordable prices for every member of the family."

Payless was founded in 1956, in Topeka, Kan. on a revolutionary idea – selling quality shoes at affordable prices in a self-select environment. More than 60 years later, Payless continues the self-select model combined with leading customer service to provide a fun and engaging shopping experience for its customers. 

Today, Payless employs nearly 22,000 associates worldwide and is a privately held company owned by Golden Gate Capital and Blum Capital Partners.

What will tomorrow bring?

Learn more at the Payless website.