Payless to close all shoe stores, report says


The company was preparing to file for bankruptcy for the second time in two years, people with knowledge of the matter said last week.

On Friday, the chain said it will hold liquidation sales starting Sunday and wind down its e-commerce operations. Reuters says after the deal couldn't be made, the Topeka, Kansas-based company chose to prepare to liquidate.

Payless ShoeSource made headlines in November 2018 whenit tricked social media influencers with a fake pop-up store called Palessi.

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The report mentioned that there is still a small chance the company could be bought after the bankruptcy filing.

The liquidation process doesn't affect Payless's franchise operations or its Latin American stores, which remain open for business, according to the statement.

It's common for retailers to try to use bankruptcy to reorganize by shedding debt and closing stores. That's what happened with Gymboree and RadioShack.

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The latest victim of the retail apocalypse appears to be Payless ShoeSource.

Shoppers are increasingly shifting their buying online or heading to discount stores such as T.J. Maxx to grab deals on name-brand shoes.

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