Bargain footwear titan Payless ShoesSource recently announced that it will be shutting down 400 of its US stores, 378 of which are U.S. & Puerto Rico locations. Payless is the latest addition to the growing list of retailers that have already filed bankruptcy this year. (Read story on Wetseal). On Tuesday, the retailer filed a Chapter 11 Bankruptcy, in a US Bankruptcy court in Missouri. Don’t fret, Payless fans, the purpose of the bankruptcy filing is to protect its current assets while reorganizing the brand, since it claims to have more liabilities than assets ($1 billion in assets vs $10 billion in liabilities). Since that is the case, it is definitely a clever strategy to eliminate the stores that are no longer profitable and replace them with other sources of revenue.
Although many of the stores may be closing, Payless still plans to “continue business in the ordinary course in terns of customers, vendors, partners and associates.” For those who wonder whether stores may close in their area, Payless still has an ecommerce presence where goods can be purchased online. With the store closing across the nation, one thing to look forward to is the huge closeout sales with a lot of merchandise marked down for low, low prices. And who doesn’t like a deal? Payless plans to rebuild their brand and make it better. That says a lot about a company, that can admit when things must change and improve to not only increase sales, but to also appease their customer. This also determines the successfulness of a brand, whether it can show resiliency amid financial turmoil. It will be exciting to see what the Payless has in store for the future.
For store closings in your area, click here.
Read my original post on Level 21 Magazine’s Blog here.