It's been a tough couple of years for brick and mortar retailers. With online retailers like Amazon taking over the market in a lot of arenas, stores are struggling! We've seen the end of some pretty big name retailers, like Toys-R-Us and Sears, go bankrupt. Others have drastically reduced the number of locations they have, in an attempt to stay afloat. It's always hard when one of your favorite stores goes out of business, and it looks like we're losing another one. Payless ShoeSource, a favorite among parents for their huge selection and amazing prices, is reportedly in the process of liquidating their retail business. That means that all 2,300 Payless locations in the United States and Puerto Rico will close their doors. It would be the largest retail liquidation ever.
Payless ShoeSource previously filed for bankruptcy protection, but emerged from that in 2017 and seemed poised to stick it out and continue with business as usual. So this new development comes as a bit of a shock.
However, according to Reuters, the company has been unable to find a buyer and close a deal that would keep their stores open. When a company files for bankruptcy protection, they'll normally try to find a buyer to inject capital in their business and dissolve debts. But when that doesn't happen, as seems to be the case here, liquidation is the next logical step.
There is still a small chance that a buyer will come forward and Payless would be able to stave off closing all their stores. Sources say they're scheduled to file for bankruptcy for the second time at the end of this month.
However, without a buyer, it seems unlikely that they'll be able to keep their stores open. Payless hasn't confirmed or denied the reports of the impending closures. But if sources are correct, all 2,300 stores in the U.S. and Puerto Rico could begin liquidation sales as early as next week. Store in Canada and Latin America are said to be unaffected by the proceedings. Like we said, it's always sad when one of our favorite stores closes their doors. But if you're looking for some deals on shoes, next week might be a good time to start stalking your local Payless.
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