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Payless ShoeSource may be closing all stores, report says

Posted: 9:26 AM, Feb 15, 2019
Updated: 2019-02-16 00:23:17Z

Is discount shoe retailer Payless closing all of its 2,300 stores in the United States?

A report from Reuters cites a source who said the plans for closure will be in a Payless ShoeSource bankruptcy filing expected later this month.

If the bankruptcy filing happens it will be the second time in two years. The company has been trying to find a buyer, but attempts have been unsuccessful.

In the April 2017 bankruptcy filing, the company had $800 million in debt, court papers showed . A group of creditors took over ownership then.

“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," Payless said in a statement. "We expect all stores to remain open until at least the end of March and the majority will remain open until May. This process does not affect the Company’s franchise operations or its Latin American stores, which remain open for business as usual.”

Payless ShoeSource made headlines in November 2018 when it tricked social media influencers with a fake pop-up store called Palessi. Video shows influencers believing Payless shoes were more high-end.