Payless officially filed for Chapter 11 bankruptcy Monday with plans to close all 2,500 of its stores.
This is the company’s second round in bankruptcy court after emerging from an April 2017 filing about 18 months ago. It will close all 2,500 U.S., Puerto Rico and Canada stores, with a combined total $470 million in outstanding debt.
Payless will close all 2,500 of its stores in the United States, a spokeswoman told the Dayton Daily News Friday afternoon. Liquidation sales at stores started Sunday with most sales ranging from 10 percent to 30 percent off currently.
Stores are expected to be open through at least March, with many remaining open until May. Purchasing options online have already been shut down.
2. Gift Cards
Stores intend to accept gift cards through March 11, according to a statement from the company, upon approval from a bankruptcy court judge.
3. Coupons and rewards programs
All rewards programs and outstanding merchandise coupons have been discontinued.
4. Brookville distribution center
Payless does not have the details or timeline for when the facility will close, but the company has confirmed the facility that employs roughly 550 will close, said Brookville city manager Gary Burkholder.
“Any time an employer leaves the community, it’s a sad day,” he said.
»BIZ BEAT: Hobby Lobby plans 65 new stores this year
Collective Brands, the former owner of Payless before private equity firms Golden Gate Capital and Blum Capital Partners bought Payless in 2012, first announced it would build the 600,000 square-foot Eastern Distribution Center in May 2007.
Local officials credited the Payless facility for bringing other major projects to the area, including the $90 million Proctor & Gamble, distribution center at the Dayton Airport.
5. Other places to buy discounted footwear
Payless saw increased competition among a changing retail landscape. Some of its biggest competitors were discount retailers like TJ Maxx, Burlington Coat Factory and Marshalls that sold shoes, along with apparel, home goods and beauty products at lower-than-industry prices.
FIVE FAST READS
Thank you for reading the Journal-News and for supporting local journalism. Subscribers: log in for access to your daily ePaper and premium newsletters.
Thank you for supporting in-depth local journalism with your subscription to the Journal-News. Get more news when you want it with email newsletters just for subscribers. Sign up here.