After more than 60 years in business, Payless ShoeSource is closing its doors in North America.
The company announced today that it would be filing bankruptcy for the second time in two years and, as a result, closing all of its North American stores.
“Despite our best efforts to address the rapidly changing retail environment, we – like many other retailers – have been forced to face very difficult choices,” said a statement from Payless.
“While we have worked diligently with our suppliers and other partners to best position Payless for the future, we have been unable to operate our North American businesses on a sustainable basis.”
As a result, Payless says its “voluntarily” decided to file for Chapter 11 protection in the United States and will soon commence similar proceedings in Canada.
That process will include closing all of its stores in the U.S., Puerto Rico and Canada, and winding down the company’s e-commerce site as well.
Online sales ended on Feb. 15, but the company's products are still available on Amazon.
Liquidation sales have begun for more than 2,100 Payless stores in the U.S. and will begin soon for its 248 locations in Canada.
Payless anticipates those sales will continue through the end of May for the most part.
The company says its also sought authorization from the courts to honour customer gift cards and store credit until March 11, 2019, allowing customers ample time to return or exchange products.