Reuters is now reporting that Payless ShoeSource confirmed on Friday that they are closing all of its 2,300 U.S. and Puerto Rico stores. Liquidation sales will start Sunday, February 17, 2019. The company also is winding down e-commerce operations.
In a statement from Payless ShoeSource, a company spokesperson said all stores will remain open until the end of March and the majority will remain open until May.
Payless had announced earlier this week that they were planning to close all stores if a buyer was not found before it files for bankruptcy later this month. This would be the second bankruptcy for the company since 2017, when it filed in April and closed 400 stores.
Locally, Payless has two stores – one at the Lycoming Mall and one at the Loyal Plaza at 1871 E. Third Street, Williamsport. Payless also has a store at the Susquehanna Valley Mall in Selinsgrove. When asked if she could confirm the closing of the local stores, a representative from the Williamsport store said she could not comment. The representative referred a reporter to the corporate office.
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.