Report: Payless to file for bankruptcy, close all stores

Payless has filed for bankruptcy and all stores set to close

(Gray News) - The end is reportedly near for another retailer.

Payless ShoeSource is planning to file for bankruptcy later this month and close all of its stores, according to a report in Reuters, who cited people familiar with the matter.

The company has not commented.

According to the company, Payless employs more than 18,000 associates and has 3,600 stores worldwide.

Reuters reported that the company has been seeking a buyer but hasn’t found one, thus prompting liquidation.

The report said there’s always the chance the company could find a buyer after declaring bankruptcy.

Saddled with debt from a 2012 buyout, the Topeka, KS-based company previously declared bankruptcy in April 2017 and re-emerged a few months later, Bloomberg reported.

Payless, which bills itself as the “largest specialty family footwear retailer in the Western Hemisphere,” was founded in 1956 and is a privately held company owned by an group that includes Alden Global Capital, Invesco Senior Secured Management, and Octagon Credit Investors.

If the company goes under, it will join a number of major brand over the past year, such as Toys R Us and Gymboree.

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