Payless emerges from Chapter 11 bankruptcy to reopen U.S. stores
Category: #retail  By Pankaj Singh  Date: 2020-01-18
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Payless emerges from Chapter 11 bankruptcy to reopen U.S. stores

Payless ShoeSource has emerged from Chapter 11 bankruptcy for the second time and is planning a comeback after the closure of Brookville distribution center and retail stores in 2019. The company is currently focusing to expand in the international markets.

Payless declined to offer details regarding the reopening of stores in the US. Known for its affordable sandals, boots, and other accessories, the company still offers certain products that can be ordered via Amazon.com.

In February 2019, Payless filed its Chapter 11 bankruptcy protection. The company plans to reopen some of its 2,000 stores that it had shuttered last year.

The company, based in Topeka, Kansas, has expressed its desire to reinvigorate its major business unit in Latin America.  This is in addition to the company’s plan to relaunch U.S. e-Commerce site as well as open few other stores in the U.S. However, specific details regarding this business expansion are not mentioned.

In February 2019, Payless planned to close distribution centers in Brookville as well as nearly 2,500 stores in the U.S. After the closure of distribution centers and retail stores, workers from 550 different distribution centers have lost their jobs.

Its retail operations that are not based in North America, as well as its company-owned stores in Latin America, were not included in Chapter 11 filing, as they are separate legal entities.

The former bankruptcy filing, therefore, didn’t affect the company’s 710 stores or franchises in Latin America, the Middle East, and Southeast Asia, according to the Associated Press.

Officials intend to leverage Payless’s existing infrastructure so that the company can innovate and fast-track its highest growth opportunity available, as stated by the company’s new CEO, Jared Margolis.

The 62 year-old chain first filed for Chapter 11 bankruptcy in 2017. It resulted in cutting down of debts and closed approximately 700 stores that are struggling with massive debts.
 

Source credits:

https://www.daytondailynews.com/business/payless-emerge-from-bankruptcy-again/wf0FyLXXqjoyVgjGEprZnK/



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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