Payless Emerges from Bankruptcy After Closing Over 2,000 US Stores
Payless ShoeSource is making a comeback for the second time.
After filing for bankruptcy in April 2017 and again in February 2019, Payless announced today that a new management team will attempt to reintroduce the affordable shoe retailer to US markets, according to Good Morning America.
Payless’ new CEO Jared Margolis (the former president of a licensing agency called CAA-GBG) said in a statement, “I am pleased to have the opportunity to lead this iconic retail brand into a new strategic phase with a strengthened balance sheet and clean financial outlook.”
“We intend to leverage Payless’ existing infrastructure, which is best in class and already includes product design and development, distribution, marketing, and a strong relationship with major footwear manufacturers,” the statement read. “Thus, providing the new Payless with the ability to be nimble, innovative, and to fast-track our biggest growth opportunity: The United States.”
He continued: “We will implement a new comprehensive strategic plan to strengthen our relationship with our vendors and suppliers, support our global franchise partners and deepen the trust of our customers.”
More than 700 international Payless stores in Latin America, Southeast Asia and the Middle East are still intact, Good Morning America reports.
Last year, Payless filed for Chapter 11 bankruptcy protection, shutting all 2,100 US stores and leaving 16,000 people unemployed.
“Payless will begin liquidation sales at its U.S. and Puerto Rico stores on February 17, 2019, and is winding down its e-commerce operations,” a Payless spokesperson confirmed to CNN Business at the time, adding that “this process does not affect the Company’s franchise operations or its Latin American stores, which remain open for business as usual.”
The shoe retailer, which was founded in 1956, filed for Chapter 11 bankruptcy in April 2017, according to CNN Business. The outlet went on to report that at the time that the company closed around 400 of its stores.