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

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

Inside an NYC Payless store (Credit: Getty Images)

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

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”

The Daily Digest - Tuesday

Commercial rent stabilization bill makes a comeback, retail leasing gets boost from falling rents

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

arrow_forward_ios