Discount shoe retailer Payless ShoeSource is the latest retail chain in trouble, as the company filed for Chapter 11 bankruptcy protection in the U.S. on April 4.
Following the filing, the Kansas-based retailer announced immediate plans to close nearly 400 stores in the U.S. and Puerto Rico in an effort to reorganize. The company has also reached agreements with many of its top lenders, who will provide up to $385 million in debtor-in-possession financing, which will allow the company to continue business during the bankruptcy process.
Payless CEO Paul Jones said in a statement about the filing, "This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify."
This is not the first sign of trouble for the retailer, who operates 4,400 stores in more than 30 countries. In 2004 hundreds of stores were closed in an attempt at restructuring, and in 2012, Payless' former parent company was bought out and control of Payless was split between Blum Capital Partners and Golden Gate Capital. Trouble was also seen as recently as December 2016, when Payless shuttered all 132 of its Australian locations with a loss of over 700 jobs.
Following the latest store closures, Payless has plans to "aggressively manage" their remaining portfolio, but will also be looking to expand more in international markets, including Latin America.
Currently, there are no announcements regarding Canadian Payless closures. You can view the full list of confirmed store closures online.
Why do you think Payless ShoeSource is struggling in today's retail market? Do you think Canadian Payless locations could be next on the chopping block? Share your thoughts in the comments!