Payless ShoeSource plans to close all of its 2,300 stores in bankruptcy proceedings, sources told Reuters.
Sources told Reuters that Payless plans to liquidate after attempts to find a buyer have been unsuccessful. Reuters indicated there’s “still a small chance” a buyer could be found after the footwear chain files for bankruptcy, but one of the sources said the company is preparing to start going-out-of-business sales in the next week.
In bankruptcy proceedings, Payless plans to seek out buyers for its real estate while maximizing the value of its inventory in liquidation.
Payless continues to face debt challenges following a 2012 leveraged buyout by Golden Gate Capital and Blum Capital Partners. It filed for bankruptcy protection in April 2017, closed nearly 400 doors and restructured its debt, and emerged by August 2017.
Reports arrived earlier this month that it was exploring a second trip to bankruptcy court and could close the majority or all of its locations if a buyer wasn’t found.