Payless Files For Bankruptcy, 11 Stores In Massachusetts Closing

By Anne D'Innocenzio, AP Retail Writer

NEW YORK (CBS/AP) — Shoe chain Payless ShoeSource has filed for Chapter 11 bankruptcy protection, becoming the latest retailer to succumb to increasing competition from online rivals like Amazon.

The Topeka, Kansas-based retailer said Tuesday that it will be immediately closing nearly 400 stores as part of the reorganization. It has over 4,400 stores in more than 30 countries and was founded in 1956.

Payless plans to reduce its debt by almost 50 percent, lower how much it pays in interest and line up funds. The company says some of its lenders have agreed make available up to $385 million to keep the stores running.

payless store Payless Files For Bankruptcy, 11 Stores In Massachusetts Closing

(Photo by Joey Foley/Getty Images for Payless ShoeSource)

In Massachusetts, shoppers will see 11 Payless stores disappear.

payless massachusetts Payless Files For Bankruptcy, 11 Stores In Massachusetts Closing

The list of Massachusetts Payless stores closing. (Image credit Payless)

“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” said Payless CEO Paul Jones in a statement.

Shoppers are increasingly shifting their buying online or going to discount stores like T.J. Maxx to grab deals on designer brands. That shift has hurt traditional retailers, even low-price outlets like Payless.

[graphiq id=”bd5xVhYOys5″ title=”Payless ShoeSource” width=”600″ height=”748″ url=”https://w.graphiq.com/w/bd5xVhYOys5″ link_text=”Graphiq” ]

In fact, Moody’s Investor Service said earlier this year that the number of “distressed” retailers —those with cash problems and lots of debt that are facing strong competition — is at the highest rate since 2009. It named Payless as one of the retailers.

Several retailers have closed stores or gone out of business in 2017. The Limited closed all 250 of its remaining stores early this year. It had operated nearly 400 stores at the end of 2000. Teen retailer Wet Seal in January said it would close its 171 stores.

(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)

Comments

One Comment

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Boston

Opioid Crisis
Download Our App
Download Weather App

Watch & Listen LIVE