Payless Shoe Stores Announces Immediate Closures
A week ago, we told you of an impending bankruptcy filing by Payless Shoe Stores. That is now a reality, as is the closure of nearly 400 stores.
Payless filed for Chapter 11 bankruptcy Tuesday and this morning announced the stores that would be closing.
The good news is, there are only two Iowa locations closing their doors. They're located in Carroll and Davenport. Judging by the fact the list of closings says "Shop at www.payless.com" next to the Carroll store, one would have to assume that store is one of the immediate closures. The full list of closures is very lengthy with 43 states, Puerto Rico, and Washington, D.C. also affected.
Unfortunately, more closings are likely to follow. According to the Payless corporate website,
Payless is working to aggressively manage the remaining real estate lease portfolio either by modifying terms or evaluating closures of additional locations. We have hired a third party to oversee the liquidation process for the closing locations, and that oversight will include specific discounting and promotional plans.
In a nutshell that means we've got some existing leases we need to get resolved in order to close more locations. Here's the list of Payless locations in Iowa, as of yesterday.