Payless to liquidate stores and wind down e-commerce arm
Payless is about to enter the graveyard of retailers.
The company spokesperson confirmed to FOX Business it will begin a broad liquidation in the coming days.
“Payless will begin liquidation sales at its U.S. and Puerto Rico stores on February 17, 2019, and is winding down its e-commerce operations. We expect all stores to remain open until at least the end of March and the majority will remain open until May. This process does not affect the Company’s franchise operations or its Latin American stores, which remain open for business as usual” according to the statement.
The discount shoe retailer, according to its website, has “nearly 3,600 stores in over 40 countries, Payless is a global brand” reads the description. It also states it is the “largest specialty family footwear retailer in the Western Hemisphere” which makes this process the largest ever for a retailer, as reported by Reuters.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 197.12 | -1.26 | -0.64% |
Payless has been dogged by liquidation rumors in recent weeks. On Thursday Reuters was first to report liquidation was imminent.
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Last year, it announced it would file for bankruptcy for the second time in two years, the company previously filed for bankruptcy in April 2017.
Payless is hardly alone, store closures and retail bankruptcies are on the rise as e-commerce retailers such as Amazon continue to lure shoppers.
While Sears avoided a massive liquidation, after CEO Eddie Lampert bid $5.2 billion for the bankrupt retailer he ran into the ground, many employees were not pleased he would still be controlling the company. Another retailer J.C. Penney is also struggling and recently outlined a new strategy to stay afloat.