Contact Us
News

Payless Files For Bankruptcy Protection, Will Shutter 400 Stores

Want to get a jump-start on upcoming deals? Meet the major players at one of our upcoming national events!

Payless

Payless Shoe Source has officially filed bankruptcy and plans to close 400 stores due to slumping sales and fierce e-commerce competition.

It was leaked more than a week ago by people familiar with the matter that the discount retailer was filing for Chapter 11 protection with plans to close about 10% of its 4,000 stores. As part of its reorganization plan, the footwear chain plans to attract new capital, unload debt and boost its e-commerce business to become more competitive, USA Today reports.

News of Payless’ bankruptcy came as a surprise considering the strength of the discount retail segment. On a national scale, discount retailers surpassed traditional retailers in sales per SF last year, JLL reports, with chains like T.J. Maxx and Marshalls averaging sales of about $304/SF as of October, while traditional department stores like Macy’s pulled in $158/SF in sales.