Payless took over a former Armani store, renamed it “Palessi,” and sold shoes, typically priced at $20-$40 in Payless stores, at inflated designer price tags of $200 to $600.
Payless ShoeSource is preparing for its second bankruptcy, which could come as soon as within two weeks, a person familiar with the situation told CNBC.
As part of the bankruptcy process, Payless is looking for buyers for its real estate, which could include selling large blocks of stores in certain areas of the country. If it cannot find buyers, it may need to shutter the majority, if not all, of its North American stores, the person said.
The person cautioned that plans remain in flux and it is still possible that Payless could avoid a bankruptcy filing, potentially by finding a buyer for the entire company.
Payless filed for bankruptcy protection in April 2017 and closed nearly 400 stores. The retailer currently has more than 2,700 North American stores, according to its website.
Sears saved from liquidation: Judge approves bankruptcy sale to ex-CEO Eddie Lampert
Use it or lose it!: Last day to use Gymboree and Crazy 8 gift cards is Feb. 16
Charlotte Russe bankruptcy: Retailer closing 94 stores. Is your store on the list?
The person requested anonymity because the information is confidential. A spokesperson for Payless did not immediately respond to a request for comment.
Bloomberg first reported Payless’ bankruptcy plan.
If a filing were to occur, Payless would be the latest in a string of retailers to emerge from bankruptcy protection only to boomerang back. Children’s apparel brand Gymboree recently filed for its second bankruptcy in less than two years.
© CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.
Read or Share this story: https://www.usatoday.com/story/money/2019/02/08/payless-shoesource-bankruptcy-and-closings/2817986002/