Payless ShoeSource announced that the company will be shuttering thousands of its U.S. stores as it has been struggling to compete with other big-name brands in the industry.
Here are seven things to know about the company’s closures:
- The company said that it will shutter the doors of its 2,300 U.S. stores.
- The move comes as Payless is filing for bankruptcy later this month.
- This could lead to the company having clearance, liquidation sales as soon as next week.
- The decision would mark the second bankruptcy for the shoe chain as it previously filed for bankruptcy in 2017 to eliminate large amounts of debt.
- The Payless bankruptcy from 2017 resulted in the company shuttering the doors of more than 500 “underperforming” locations in the U.S. and Puerto Rico.
- The retailer has yet to confirm the report, although sources close to the matter told Reuters that there is a small chance of a buyer saving the company from closing all its locations, although who that buyer could be remains unclear.
- If the company follows through with the closure of its 2,300 stores, it would continue the trend of retail businesses in the U.S. struggling to keep up with the surge of e-commerce, causing them to close their doors.
Payless was founded in Topeka, Kansas in 1956 by cousins Louis and Shaol Pozez. W. Paul Jones currently serves as the CEO.