Payless Shoe Source is on the verge of its second bankruptcy, a move that could result in the closure of most of its stores, reports indicate. (Dwight Burdette)
By Leada Gore | [email protected], AL.COM
Shoe retailer Payless ShoeSource will close its 2,300 U.S. stores as part of a bankruptcy filing later this month, Reuters is reporting.
Going-out-of-business sales could start as soon as next week.
The bankruptcy would be the chain’s second, with the first coming in 2017 as it looked to shed massive amounts of debt. That bankruptcy included closing more than 500 “underperforming” locations in the U.S. and Puerto Rico.
Payless has not confirmed the report but sources close to the matter told Reuters there is still a small chance a buyer could emerge after the bankruptcy filing. If that happens, some of the chain’s locations could remain open.
If the closures occur, Payless would join a string of national retailers shutting their doors. In recent years, Toys R Us, Gymboree and Charlotte Russe have filed for bankruptcy and either stopped operations or closed multiple stores.
Payless was founded in 1956 in Topeka, Kansas.