Payless ShoeSource has Emerged from Bankruptcy Yet Again with New Plans

After closing all of its stores in the U.S in 2019, Payless ShoeSource announced that it has emerged from Chapter 11 bankruptcy again, and is now focused on its international operations.

Although the company closed its U.S. locations, it continued to operate in Latin America, Southeast Asia, and the Middle East. The company has over 710 stores, including those with franchises, in more than 30 countries. Payless’s international business has sold roughly 25 million pairs of shoes over the past 12 months.

Payless had filed for bankruptcy last February and shut down all of its 2,500 stores in the states. Prior to that, the company filed for Chapter 11 in April 2017, eliminating nearly 700 stores and roughly $435 million in debt. It emerged out of bankruptcy about four months later.

Payless says it has appointed a new executive management team and said it will unveil its strategy to turn the business around, and grow again in the U.S., later this year. The company said it plans to collaborate with high-profile individuals and brands.

CEO Jared Margolis said that the company’s “biggest growth opportunity” remains the U.S.

“We intend to leverage Payless’ existing infrastructure, which is best in class and already includes product design and development, distribution, marketing, and a strong relationship with major footwear manufacturers,” Margolis said.

“This plan will include a strong digital component to allow an omnichannel approach to the Latin market, as well as several product strategies that will allow Latin consumers to continue seeing Payless as their primary source of high-quality, value-priced family footwear,” said Justo Fuentes, who will lead the company’s business unit in Latin America.