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| Economy |
| Payless ShoeSource to shutter all of its remaining US stores |
| 2019-02-16 |
| NEW YORK (AP) ‐ Payless ShoeSource is shuttering all of its 2,100 remaining stores in the U.S. and Puerto Rico, joining a list of iconic names like Toys R Us and Bon-Ton that have closed down in the last year. The Topeka, Kansas-based chain said Friday it will hold liquidation sales starting Sunday and wind down its e-commerce operations. All of the stores will remain open until at least the end of March and the majority will remain open until May. The debt-burdened chain filed for Chapter 11 bankruptcy protection in April 2017, closing hundreds of stores as part of its reorganization. At the time, it had over 4,400 stores in more than 30 countries. It remerged from restructuring four months later with about 3,500 stores and eliminated more than $435 million in debt. The company said in an email that the liquidation doesn’t affect its franchise operations or its Latin American stores, which remain open for business as usual. It lists 18,000 employees worldwide. Shoppers are increasingly shifting their buying online or heading to discount stores like T.J. Maxx to grab deals on name-brand shoes. That shift has hurt traditional retailers, even low-price outlets like Payless. Heavy debt loads have also handcuffed retailers, leaving them less flexible to invest in their businesses. |
| Posted by:Besoeker |
| #5 Bon Ton, Payless and Toys R Us have one thing in common - leveraged buyouts. Insane levels of debt were piled on at the bottom of the interest rate cycle. Sears and JC Penney are also in a fairly similar predicament. Both bought back billions in stock by issuing similar amounts in debt. The deferred store and computer system improvements means they hollowed their businesses out for no good reason. Stock buybacks and LBO's have been a disaster for the retail sector. |
| Posted by: Zhang Fei 2019-02-16 19:01 |
| #4 What a pity... Always liked the local store when I wanted a pair of "sneakers" for a low cost comfortable shoe. The upper scale store wanted three times as much for a Brand nameâ„¢ athletic trainer and all of the Walmart varieties didn't fit right... |
| Posted by: magpie 2019-02-16 15:52 |
| #3 Didn't diversify by concentrating on shoes. Outdone by Walmart. One stop, multi-service for the same market. |
| Posted by: Procopius2k 2019-02-16 14:47 |
| #2 Good riddance to plastic crap from China. Pay more and get a shoe that will last more than a couple of months. |
| Posted by: Abu Uluque 2019-02-16 13:51 |
| #1 Crap from China and other third world toilet stalls. Another money racket for guys in Manhattan offices who all wear Gucci loafers. |
| Posted by: M. Murcek 2019-02-16 05:29 |