Payless files for bankruptcy, will close 400 stores

The retailer will shutter 49 stores in California

Apr.April 06, 2017 01:42 PM
Payless ShoeSource (Getty Images)

Payless ShoeSource filed for Chapter 11 protection with plans to close 400 under-performing stores in the U.S. and Puerto Rico, including nine locations in Los Angeles County.

Stores are expected to close immediately in cities such as Long Beach, Los Angeles, Woodland Hills and Rosemead.

The Topeka, Kansas-based footwear chain has faced declining sales and said its bankruptcy filing on Wednesday was designed to restructure its debt load to position it for long-term success, Women’s Wear Daily reported.

Payless said it is working to aggressively manage its real estate portfolio by modifying lease terms and evaluating closures of additional locations.

Payless, which was founded in 1956, operates about 4,400 stores worldwide in more than 30 countries.

The company joins a wave of bankrupt retailers including Nasty Gal, the Limited and Wet Seal Inc.

Big name retailers such as Macy’s Inc., Sears Holdings Corp., Abercrombie & Fitch Co. and Bebe Stores Inc. have announced store closures totaling 1,500 since the beginning of this year, according to WWD. [WWD]Subrina Hudson

Related Articles

LA promo

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!

From left: Michael Shabani, James Randall, and 8840 Beverly Boulevard (Credit: Getty Images)

Investor James Randall pays $36M for WeHo furniture showroom

From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

3339 Exposition Blvd. and Asher Luzzatto

Luzzatto Co. assembling creative office hub in West Adams

Jason Illoulian and the Cemex plant

Faring makes $30M assemblage play on WeHo/LA border

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

Hudson Pacific Properties CEO Victor Coleman and the Westside Pavilion (Credit: Google Maps)

Hudson Pacific wants full control of Google-leased One Westside; not sweating WeWork