Payless ShoeSource may liquidate all stores this month if they do not find a buyer soon, according to Reuters.
Reuters says that the company, which would file bankruptcy for a second time, would be closing all of its 2,300 U.S. stores, according to unnamed sources familiar with the company’s affairs. The first bankruptcy filing was in April of 2017 and 400 stores closed.
Locally, Payless has two stores – one at the Lycoming Mall and one at the Loyal Plaza at 1871 E. Third Street, Williamsport.
Payless, based in Topeka, Kansas, started in 1956 as a single store. The company has gone through several changes of ownership in recent years. A group of creditors, including hedge fund Alden Global Capital LLC, took over ownership, according to bankruptcy court records.
There is still a small chance a buyer could purchase the struggling chain after Payless files for bankruptcy, according to Reuters’ sources. In the meantime, the company is preparing to run going-out-of-business sales at its shops as early as next week, according to those sources.