Payless ShoeSource Bankruptcy May Be Imminent

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A new report claims that a Payless ShoeSource bankruptcy may be in the company’s near future.

Payless ShoeSource Bankruptcy May Be Imminent

Source: ©iStock.com/tomloel

According to this report, Payless ShoeSource is planning to file for bankruptcy as early as next week. The report also claims that the shoe retailer will be closing between 400 and 500 stores as part of a reorganization plan.

Several unnamed insider sources are the origin of this rumor. One of them told Bloomberg that Payless ShoeSource was originally planning to close as many as 1,000 of its stores. The company currently has more than 4,000 stores spread across 30 countries and employs about 22,000 people.

Reports that Payless ShoeSource is considering filing for bankruptcy may not come as a surprise to some. A report from January of this year claimed that the company was working to restructure massive amounts of debt.

According to this report, Payless ShoeSource had $665 million in debt. The company was reportedly working with debt-restructuring attorneys to overcome it. This report also claimed that slow foot traffic was hurting the shoe retailer’s business as rivals pulled away its customers, reports Reuters.

Payless ShoeSource reportedly planning for bankruptcy comes as many in the physical retail industry struggle to keep customers’ attention. Instead, companies have found that online shopping is the customer’s preference and this has caused a decline in traffic.

It isn’t just Payless ShoeSource that has been struggling with the shift to online shopping. Several other retailers have also filed for bankruptcy recently. They include RadioShack, The Limited Stores and American Apparel.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/payless-shoesource-bankruptcy/.

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