Payless ShoeSource, the chain of discounted shoe stores, has filed for bankruptcy. This may be the beginning of the end for the brand.
The company has announced that it will be shuttering all of its 2,500 stores in North America. It will also be ceasing its online sales. By measure of sheer scale, the Wall Street Journal has claimed that the Payless closure may be the single largest liquidation of a retail chain in history.
If you're in the market for some new shoes, keep your eye out for sales that should be popping up in short order. The stores are set to start closing in March.
In a press statement, Stephen Marotta, the chief restructuring officer at Payless, said, "Payless emerged from its prior reorganization ill-equipped to survive in today's retail environment. The prior proceedings left the company with too much remaining debt, too large a store footprint and yet-to-be-realized systems and corporate overhead structure consolidation. As a consequence, despite our substantial efforts, we were ultimately unable to operate the North American retail and e-commerce operations on a sustainable basis."
The company reports that its retail stores outside of North America will remain open.
They also say that gift cards and store credit will be honored until March 11. If you have one sitting around, now's the time to use it.