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Payless ShoeSource closes all of its stores in the United States – 2,100 nationwide and in Puerto Rico – and is in danger of going bankrupt.
The company confirmed the news to CNN Business on Friday and announced the closures on Saturday. Liquidation sales began the next day and will continue until May, a spokesman told CNN, although some stores are starting to close in March.
Payless's death is due to several reasons. As the New York Times notes, traditional stores were at the heart of Payless's strategy, which may have hurt sales now that more and more customers are choosing to shop online. (It should be noted that in addition to closing its physical storefronts, Payless is closing its online store.) The closure of department stores in shopping malls across the country has also hurt Payless – these large retailers serve as "Pillars" that drive people to shopping malls The closure of other shopping malls harms the traffic of small stores offering more specific offers like Payless. The discount shoe retailer also struggled to compete with other discount stores, especially those selling smaller versions of expensive brands, as well as Amazon and Zappos.
It is unclear if the discount shoe retailer will go bankrupt to try to reduce some of its debts, like Toys R Us and Sears. (Toys R Us ended up liquidating anyway, while Sears was saved from liquidation by former CEO Billdie Eddie Lampert, whose mismanagement was one of the biggest factors which led to its near-insolvency.) bankruptcy in April 2017 and the closure of 400 stores in the process, but as CNN notes, this move was not enough to save the company from its dire financial situation.
Payless will not close all of its stores, however: A spokesman told CNN Business that its international franchises and Latin American stores would not be affected. If you live in the United States, the next few months may be your last chance to get a pair of Payless shoes. Unless you want to take an international flight, that's the case.
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