Payless Inc. is discussing a restructuring of its $600 million debt load with lenders while seeking to close about 1,000 stores, according to a report from Bloomberg. If unable to reach a deal, the shoe chain may pursue a bankruptcy reorganization.
Sources told the news service that Guggenheim Partners and Kirkland & Ellis have been hired to assist in the process.
In 2012, Payless was spun off from Collective Brands Inc. and is now jointly owned by Golden Gate Capital and Blum Capital. Payless reportedly operates 4,470 stores and has annual revenue of $3.8 billion.
Photo courtesy Payless
