The shoe store will close all 2,100 of its locations in the US and Puerto Rico in the coming months, a CNN Business spokesperson told Friday. Liquidation sales begin on Sunday, and stores will start closing in March, although most will open until May.
Payless also plans to close its online store. The company can file for bankruptcy for the second time by the end of the month, according to reports.
Founded in 1956 in Topeka, Kansas, Payless has over 3,600 locations in 40 countries and over 18,000 employees, according to its website. A spokesperson said that international franchises and Latin American stores will not be affected.
The company first hired for bankruptcy in Chapter 1
1 in April 2017 and closed about 400 stores at that time. It reorganized and cut millions of dollars into debt, but it doesn't seem enough to save the company.
It is common for retailers to try to use bankruptcy to reorganize by throwing debt and closing stores. These companies often come to another bankruptcy shortly after. That was what happened to Gymboree and RadioShack.
Payless is the last brick-and-mortar dealer to suffer at the age of Amazon ( AMZN ) R "Us, Brookstone and clothing store Charlotte Russe. Online shopping has led to a decline in foot traffic at US shopping malls, which was an important source of stores for stores such as Payless.
"Disturbance in retail is widely recognized," Greg Portell, a partner at the consulting firm AT Kearney, told CNN Business . "The pace of change in retailers is still continuing. Many dealers find themselves trapped in a cycle to continue rejecting consumer trends … Without bold action, retailers will be scattered with bankruptcies. "