Payless Files Bankruptcy, Will Close 400 Stores

[big dog cowboy]

Payless Files Bankruptcy, Will Close 400 Stores
Footwear News
April 4, 2017

After months of speculation, Payless ShoeSource has filed for Chapter 11 protection.

The largest specialty family-footwear retailer in the U.S. said Tuesday that it will close nearly 400 underperforming stores in the U.S. and Puerto Rico as it seeks to restructure. The company’s North American entities, as well as two Hong Kong-based entities involved in logistics (CBL) and supply chain (DAL), are included in the company’s restructuring plan, which has been filed in the U.S. Bankruptcy Court for the Eastern District of Missouri in St. Louis. Payless said has also filed for recognition of its U.S. Chapter 11 proceedings in courts in Ontario, Canada.

The company said it has inked a Plan Support Agreement with two-thirds of its first- and second-lien holders to reduce its debt load by nearly 50 percent, lower its interest costs and access “significant” additional capital to expedite its emergence from Chapter 11.

“This is a difficult but necessary decision driven by the continued challenges of the retail environment, which will only intensify,” Payless CEO Paul Jones said in a statement. “We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process.”

Payless, founded in 1956 in Topeka, Kan., has approximately 4,400 stores in more than 30 countries.

Read more: https://www.yahoo.com/style/payless-files-bankruptcy-close-400-195055462.html

 

[Hoofbite]

Should have had people pay a little more.

 

[Longboysfan]

Another big Box store bites the dust.

 

[The Fonz]

One day in the near future our society will be storeless

 

[BigStar]

One day in the near future our society will be storeless

Agree, along with most "in person" customer service related professions and businesses. You see this a lot more recently with the "customers" only going to the mall to compare an item to an online retailer wo intent of purchasing in person; online deals always seem to take the lead unfortunately in regards to bank for your buck. Most people I know purchase items this route and this middle man (phys. retail stores) will only be able to tolerate for so long before the Macys, Nordstroms, Foot Lockers, etc. of the mall will have to also convert their stores to the online retailer format; exclusively in time.

 

[MichaelWinicki]

Brick & mortar retail isn't going away.

BUT we (as a nation) are over-retailed. Way too much retail space, and malls will continue to take it on the chin.

However there are many categories that are better served by brick & mortar, such as products that are heavy (i.e. costly to ship), products that we need immediately, products that are perishable, low cost products.

Amazon doesn't make much money selling stuff. Most of the money Amazon makes is through their web services division. Selling is expensive. And when the Internet sales tax thing goes into affect (and it will) it will become even more so.

I think you're going to see more "hybrid" brick & mortar/internet businesses.

In addition brick & mortar is going to have to become more interesting/entertaining such as what you'll find with Bass Pro.

For many of the stores/chains that are having issues it's easy to see why... I have no idea what Payless brings to the table. Ugly little mall stores that don't offer much in the way of customer service or providing a unique shopping environment.

 

[BigStar]

Brick & mortar retail isn't going away.

BUT we (as a nation) are over-retailed. Way too much retail space, and malls will continue to take it on the chin.

However there are many categories that are better served by brick & mortar, such as products that are heavy (i.e. costly to ship), products that we need immediately, products that are perishable, low cost products.

Amazon doesn't make much money selling stuff. Most of the money Amazon makes is through their web services division. Selling is expensive. And when the Internet sales tax thing goes into affect (and it will) it will become even more so.

I think you're going to see more "hybrid" brick & mortar/internet businesses.

In addition brick & mortar is going to have to become more interesting/entertaining such as what you'll find with Bass Pro.

For many of the stores/chains that are having issues it's easy to see why... I have no idea what Payless brings to the table. Ugly little mall stores that don't offer much in the way of customer service or providing a unique shopping environment.

True, internet and factories and the materials (held in physical locations) to build such products will hopefully stay in the US. So the physical presence is the manufacturing/administrative aspect that will remain but will save on the bottom line regardless. We need to start creating more occupations for our citizens with the way these trends are swaying with our lagging in computer science. An example of bass pro is EastBay that has bypassed physical store locations for nearly 30 years to sell athletic clothing and sneakers directly to customers (with a great return policy) with free monthly catalogs.

 

[maxdogg]

Damn I just bought a pair of work boots there.
Great price and fairly good quality.
I'm sure my local one is in the 400 LOL.

 

[65fastback2plus2]

Brick & mortar retail isn't going away.

BUT we (as a nation) are over-retailed. Way too much retail space, and malls will continue to take it on the chin.

However there are many categories that are better served by brick & mortar, such as products that are heavy (i.e. costly to ship), products that we need immediately, products that are perishable, low cost products.

Amazon doesn't make much money selling stuff. Most of the money Amazon makes is through their web services division. Selling is expensive. And when the Internet sales tax thing goes into affect (and it will) it will become even more so.

I think you're going to see more "hybrid" brick & mortar/internet businesses.

In addition brick & mortar is going to have to become more interesting/entertaining such as what you'll find with Bass Pro.

For many of the stores/chains that are having issues it's easy to see why... I have no idea what Payless brings to the table. Ugly little mall stores that don't offer much in the way of customer service or providing a unique shopping environment.

Nailed it.

There are things you CANT buy online...and there are things people WONT buy online.

 

[big dog cowboy]

Brick & mortar retail isn't going away.

BUT we (as a nation) are over-retailed. Way too much retail space, and malls will continue to take it on the chin.

However there are many categories that are better served by brick & mortar, such as products that are heavy (i.e. costly to ship), products that we need immediately, products that are perishable, low cost products.

Amazon doesn't make much money selling stuff. Most of the money Amazon makes is through their web services division. Selling is expensive. And when the Internet sales tax thing goes into affect (and it will) it will become even more so.

I think you're going to see more "hybrid" brick & mortar/internet businesses.

In addition brick & mortar is going to have to become more interesting/entertaining such as what you'll find with Bass Pro.

For many of the stores/chains that are having issues it's easy to see why... I have no idea what Payless brings to the table. Ugly little mall stores that don't offer much in the way of customer service or providing a unique shopping environment.

So true Michael. We used to shop the mall at Christmas and used the excuse we wanted to see all the decorations. Now the mall barely decorates for Christmas and we haven't been in a very long time. It's easier to find the same products and cheaper at stores where you can park at the door or shop online.

 

[haleyrules]

Not a big surprise. The quality wasn't there. There is a local one here and it is always empty. I wondered how the here stayed in business.

 

[MichaelWinicki]

Not a big surprise. The quality wasn't there. There is a local one here and it is always empty. I wondered how the here stayed in business.

Maybe "quality" is the right word... Maybe it isn't.

But certainly the stores lack any sort of ambiance.

If they're the only game in town you can get away with that– but they aren't. The shoe category (like many others) is loaded with competition online & off.

They simply have boxes of shoes stacked up and try to get by with a perception of low-price.

Trouble is if you're located in a mall, you probably do not have the cost structure to be able to go the low-price route... In the old days before folks could compare prices easily that worked, i.e. give off a perception of low price but overall the pricing is not consistently low.

Payless is going to have to change their business model or disappear. DSW is doing much better in the category.

 

[Elusive6thRing]

One day in the near future our society will be storeless

But for now we'll just be a little bit more shoeless.

 

[MichaelWinicki]

So true Michael. We used to shop the mall at Christmas and used the excuse we wanted to see all the decorations. Now the mall barely decorates for Christmas and we haven't been in a very long time. It's easier to find the same products and cheaper at stores where you can park at the door or shop online.

Probably up until 1990ish, shopping was entertainment for many. But even before the internet, the air was being let out of that balloon due to many things such as a simple lack of time and the ability to spend one's recreation time in other ways like renting movies and playing video games. The local malls all reached their zenith in the 80's and started the downward path after the calendar hit January 1st, 1990.

I see there are several places around the country where malls, especially downtown malls that were meant to "save" downtowns in the 60's & 70's are being demolished with long abandon streets being put back in place and more conventional structures being rebuilt along the street... So you don't have the mile of parking between the streets/sidewalks and the storefronts.

Urban renewal was looked upon as a blessing by many... I curse it every day. It destroyed many structures that were quite frankly much more interesting to look at than your standard mall. And all these malls are proving to have a much shorter life span than the buildings they replaced.

 

[The Fonz]

I for one don't buy online, I try my best to support the local stores even if the price is a little higher .Small business create more jobs and good for the local economy if you ask me.

Back in 1996 I remember reading a book by Jeremy Rifkin titled: The End of Work. He basically discusses the decline of the global labor force and the dawn of the post-market era.
He was calling it Near-Workerless Economy.

 

[Trouty]

Get off muh lawn!

 

[MonsterD]

Back in 1996 I remember reading a book by Jeremy Rifkin titled: The End of Work. He basically discusses the decline of the global labor force and the dawn of the post-market era.
He was calling it Near-Workerless Economy.

Interesting when you hear about people who have to progress in the tech field talking about Universal Basic Income like Elon Musk http://www.cnbc.com/2016/11/18/elon...sal-basic-income-heres-how-it-would-work.html

 

[rynochop]

Went into my local mall for the first time in probably five years recently, was a ghost town. Don't know how some of those stores afford to pay the rent. Friday night at the mall was a must do back in the day. Don't know how many quarters I blew at the arcade...which was correctly called the gold mine

 

[Supercowboy1986]

When I think of Payless, the first thing that comes to mind are those plain white shoes all girls would wear when I was in school. They all had a blue logo on the back of the shoe, above the sole.

 

[RJ_MacReady]

Man...where am I going to buy my XJ9000s now?