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 LOS ANGELES /
Feb.February 10, 2017 03:00 PM

From the New York website: 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.

Payless has at least 100 stores in the greater Los Angeles metro area, according to its website. It 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
From left: Bill Shopoff, Sandy Sigal, and David Simon

Payment Gap: Retailers are reopening, but many aren’t paying rent

Payment Gap: Retailers are reopening, but many aren’t paying rent
Joshua Golcheh

The way out: Developer cites coronavirus in suit to exit OC shopping center deal

The way out: Developer cites coronavirus in suit to exit OC shopping center deal
Rick Caruso, the Grove mall (Credit: Donato Sardella/Getty Images, and CARUSO)

If you clean it, will they come? Rick Caruso’s visible plan to reopen malls & resorts

If you clean it, will they come? Rick Caruso’s visible plan to reopen malls & resorts
Macerich CEO Thomas O’Hern, Carson Mayor Albert Robles, and a rendering of the site

$400M mall brawl: Simon Property Group, Macerich sue city of Carson

$400M mall brawl: Simon Property Group, Macerich sue city of Carson
Old Navy is facing two new lawsuits (Credit: iStock)

Mall owner sues Old Navy for abandoning ship

Mall owner sues Old Navy for abandoning ship
Macerich CEO Thomas O’Hern, Carson Mayor Albert Robles, and a rendering of the site

$400M mall brawl: Simon Property Group, Macerich sue city of Carson

$400M mall brawl: Simon Property Group, Macerich sue city of Carson
Gavin Newsom (Credit: Emma McIntyre/Getty Images)

Retailers and some offices could open first in Newsom’s reopening plan. But there’s a catch

Retailers and some offices could open first in Newsom’s reopening plan. But there’s a catch
Rick Caruso (Credit: Tiffany Rose/Getty Images for Caruso Affiliated)

Some retailers and malls won’t survive the coronavirus shutdown

Some retailers and malls won’t survive the coronavirus shutdown
arrow_forward_ios

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

Loading...