Can’t pay up: Payless Shoes may shut down 1,000 stores

The company, one of the biggest retailers in BK, is struggling with $600M debt load

New York /
Feb.February 10, 2017 12:50 PM

Discount shoe purveyor Payless Shoes is considering shuttering some 1,000 stores to deal with its $600 million debt load.

The retailer is debating whether or not to restructure in or out of court, Bloomberg reported. The company might file for bankruptcy if it can’t reach a deal with its creditors.

As of last year, Payless had 95 stores in New York City, and was one of the top 10 retailers in both Brooklyn and the Bronx, with 35 and 18 stores in the respective boroughs, according to a report by the Center for an Urban Future. Payless has more than 4,400 stores across 30 countries and employs 25,000 people.

Private equity firms Golden Gate Capital and Blum Capital Partners bought Payless in 2012, as part of a deal that split up Collective Brands, the shoe store’s publicly traded parent company. Other retailers, including Claire’s, True Religion, J. Crew and Gymboree are also struggling to compete with online stores, according to Bloomberg. [Bloomberg] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)
These were the top 10 NYC retail leases in July
These were the top 10 NYC retail leases in July
From top, clockwise: Cushman & Wakefield's Joanne Podell, Showfields' Amir Zwickel, Appear Here's Josh Yentob, Brookfield Properties's Mark Kostic (Credit: Getty, LinkedIn)
When it comes to retail, “real estate in New York is fundamentally broken”
When it comes to retail, “real estate in New York is fundamentally broken”
From left: Adam Neumann and Marc Andreessen (Getty Images)
Adam Neumann raises $350M from a16Z for multifamily venture
Adam Neumann raises $350M from a16Z for multifamily venture
427 Broadway and Robert Frey (HGetty, THCNYC)
Former Vegas club owner bringing cannabis museum to SoHo
Former Vegas club owner bringing cannabis museum to SoHo
Mayor of New York City Eric Adams (Photo Illustration by The Real Deal with Getty Images)
NYC turns back to hotels to grow homeless shelters
NYC turns back to hotels to grow homeless shelters
Leonard Stern with Wyndham Garden Hotel Newark Airport (Getty, Hotels Combined)
Hartz buys Newark Airport hotel for $34M, plans demolition
Hartz buys Newark Airport hotel for $34M, plans demolition
Brookfield Property Partners CEO Brian Kingston and 660 Fifth Avenue (Brookfield Properties, Getty Images)
Major asset manager moves to 660 Fifth Avenue
Major asset manager moves to 660 Fifth Avenue
Cushman's Gary Gabriel and Adam Spies with one of the Long Island Industrial Assets (Cushman, Sherwood Equities, Getty Images)
Silverman grabs Sherwood industrial portfolio for $76M
Silverman grabs Sherwood industrial portfolio for $76M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...