Reports: Payless to close all 2,300 stores

By: 
Josh Briggs
Managing Editor

According to reports, Kansas-based Payless ShoeSource Inc. will soon close all of its 2,300 stores when it files bankruptcy before the end of February.

The filing will be the second for the company after failing to find a buyer.

Reuters reports that those close to the matter confirmed the news Thursday.

As for the Benton location, store management could not comment and the company's corporate office could not be reached.

According to Reuters, the closing would make Payless one of the most high-profile victims of the "string of bankruptcies that have hit the brick-and-mortar retail sector as more shopping is done online."

Reports also state that while finding a buyer has failed, a chance of one coming forward could occur once Payless files for bankruptcy.

"In the meantime, the company is preparing to run going-out-of-business sales at its shops in the next week," according to the Reuters report.

Payless filed bankruptcy in 2017, and exited 18 months ago, with about $400 million in loans, after cutting its debt pile from over $800 million, according to court records.

A group of creditors, including hedge fund Alden Global Capital LLC, took over ownership, according to bankruptcy court records, Reuters reports.
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