Payless Shoe Source is emerging from bankruptcy with a more nimble business model. — Getty Images Photo/Justin Sullivan

Payless Shoe Source said Thursday that it emerged from bankruptcy for a second time with its international stores intact and a goal of returning to the United States.

The company filed for Chapter 11 bankruptcy protection last February, less than two years after its previous bankruptcy. In the second action, Payless closed all 2,100 of its U.S. stores and 16,000 employees lost their jobs.

This time, Payless emerges from Chapter 11 with more than 700 stores in Latin America, Asia and the Middle East. Some of its stores are owned by franchisees.

The company has a new management team in place, led by Jared Margolis, former president of licensing agency CAA-GBG. Payless has said it wants to return to the United States, but did not give a timetable for doing so.

The company plans to use its existing infrastructure,”providing the new Payless with the ability to be nimble, innovative, and to fast-track our biggest growth opportunity: The United States,” Margolis said.

In a news release, Payless also said it will “collaborate with high-profile individuals and brands to ensure exclusive product offerings at a compelling price-point.”

When Payless filed for bankruptcy last year, it said it had too much debt, too many stores, and too much corporate overhead left over from when it emerged from its first bankruptcy in 2017.



(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.