February 20 2019

Payless Closing All US Stores Including Burlington Mall Location

By: Rich Hosford

An international discount shoe store is closing its stores in the United States including its location in the Burlington.

Payless ShoeSource announced this week it is entering its second round of bankruptcy and this time will close all its stores in the United States, Canada and Puerto Rico.

“We would like to express our deep gratitude for your loyalty and your business over the past 62 years,” the company said in a statement to customers. “Despite our best efforts to address the rapidly changing retail environment, we have made the difficult decision to close our stores in the U.S. and Puerto Rico and have wound down our e-commerce site.”

According to CNN Business Payless filed for Chapter 11 bankruptcy on Monday, less than two years after it had emerged from a previous bankruptcy. The reasons for the filing included too much debt, an overabundance of stores and too much corporate overhead. It also recently had issued with a computer system that hurt its back-to-school sales which caused it to carry too much inventory into the holidays and forced them to cut prices.

The closing of the company’s 2,500 stores will impact roughly 16,000 employees who will lose their jobs. CNN also reports that the company owes $1.3 million in severance payments to employees that were laid off before the filings but is not sure whether it will be able to make the payments. It is also unclear, according to CNN, whether the company will be able to pay severance to employees about to be laid off.

Finally, Payless says it will honor gift cards and store credits until March 11. They are also having a liquidation sale starting now with discounts of up to 20 to 40 percent off most items.


 

 
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