American shoe giant Payless has announced a major reorganisation: all 2,500 stores in the United States and Canada will be closed. Outlets in other countries will remain open.
Second reorganisation
The chain has been in trouble for a while: in 2017, it narrowly avoided bankruptcy: after a debt restructuring and reorganisation, the company managed to pull through. 700 stores were closed at the time.
However, a new reorganisation is already necessary: all 2,500 outlets in North America will be closed. The chain’s international branch will not be affected. Restructuring manager Stephen Marotta explained in a statement that the chain’s debt load was too heavy to survive in the current retail market. According to CNBC, the total outstanding debt amounts to 470 million dollars (415 million euros).
Chains like Payless are going through difficult times, as consumers are shopping more online and on the other hand truly big players, like T.J. Maxx and DSW, leave nothing on the table for smaller competitors.
