As of May 2019, Payless ShoeSource will have only 420 stores worldwide. The company filed for bankruptcy in 2017 and has done so again, recently. 16,000 Payless employees will lose their jobs as a result of the upcoming closing across Canada and the United States.
Decision makers at the company have indicated in recent statements that the store is ill-equipped to handle recent market changes. The retailer, based in Kansas, plans to begin liquidating 248 locations across the United States.
In a similar move, Ohio-based shoe company DSW, Inc. closed the doors to its Town Shoes Ltd. brand and shut down 38 stores across the country. They cite a lack of sales in mall-based footwear stores as the main reason for closing.
Payless was founded in 1956, but the decades-old business couldn’t overcome the challenges of mounting debts, stores with large footprints, and a difficult retail market. 2,400 Canadians face termination as a result of the company shutting down stores there. The stores in Canada have failed to pay February rent in 220 of their 248 retail locations. They reported a loss of $12 million USD during 2018.
Those with Payless ShoeSource locations in their markets should watch for upcoming sales as all stores plan to begin liquidation shortly.
