According to a report initially published by CNBC, one of America’s popular shoe retailers, Payless ShoeSource, may be facing bankruptcy and possible store closures soon. After taking over from Palessi, Payless started selling shoes that were worth $20 to $40 at $200 to $600. Unfortunately, this didn’t reflect well on the brand.
The store may go into bankruptcy in the next few weeks and is now preparing ahead of it. The company is currently on the hunt for real estate buyers who are interested in buying significant blocks of its stores in parts of the country that may not be bringing in enough profit. A source familiar with the matter said that Payless may end up closing almost all its stores in North America if it doesn’t find buyers for the properties up for sale soon.
As another option, Payless may sell the entire company rather than file for bankruptcy for a second time. The shoe retailer initially filed for bankruptcy in April 2017 closing up to 400 stores during the period. Right now, Payless has over 2,700 stores in North America and may have to close a majority, or all of them soon.
Since Payless hasn’t made the information available to the public yet, the source requested anonymity. After the news got out, media outlets tried to reach out to a representative of the company but no comments were given regarding the matter.
Payless isn’t the first retailer to consider a second bankruptcy filing. In fact, it would be one among many like Gymboree, the children clothing brand, that filed for bankruptcy twice within a short period. This time, Gymboree may not be able to bounce back fully as it announced that it is making plans to start closing its 800 Gymboree and Crazy 8 branded stores.