Bankrupt Once More

Payless ShoeSource is closing its 2,100 U.S. stores in what will be the largest-ever retailer liquidation when measured by the number of stores closing.

Payless was founded in 1956. In the 1990s the company sold 250 million pairs of shoes a year, in 2018 that number was estimated to be closer to 75 million pair.

Payless went through Chapter 11 bankruptcy restructuring less than two years ago and closed 500 stores. Creditors at the time became shareholders in the restructured company.

The company will begin liquidation sales at its U.S. and Puerto Rico stores this weekend. “We expect all stores to remain open until the end of March, and the majority will remain open until May,” a spokesman said.

The closings will increase pressure on already challenged U.S. retail malls, where Toys R Us, Sears, BonTon, and JCPenney have shut down stores. Payless said its international business, including Canada and Latin America will not be affected..

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