Payless files for bankruptcy, will close 400 stores

The retailer will shutter 49 stores in California

TRD LOS ANGELES /
Apr.April 06, 2017 01:42 PM

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

arrow_forward_ios
Foot Traffic At Major LA Retail Arteries Down Significantly

TRD Insights: LA retail hasn’t rebounded in these major submarkets

TRD Insights: LA retail hasn’t rebounded in these major submarkets
Carson Mayor Albert Robles and a rendering of the proposed project (Credit: The city of Carson)

Simon-Macerich mall project in Carson sparks latest legal claim

Simon-Macerich mall project in Carson sparks latest legal claim
Alicia Silverstone from the film 'Clueless', 1995, and a rendering of the Beverly Center (Credit: Paramount Pictures/Getty Images, and Beverly Center via Los Angeles Times)

For LA’s malls, lawsuits could be the next crisis

For LA’s malls, lawsuits could be the next crisis
Baldwin Hills-Crenshaw Plaza mall and CIM co-founder Avi Shemesh

CIM Group backs out of mall buy after community backlash

CIM Group backs out of mall buy after community backlash
The Egyptian theater (Credit: iStock)

LA movie theaters will soon reopen, but they won’t be the same

LA movie theaters will soon reopen, but they won’t be the same
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
arrow_forward_ios

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

Loading...