Report: Payless expected to close all 2,300 stores after filing for bankruptcy

[Sherman A1]

More headwinds in the Retail Sector.


(Meredith) - Payless Inc. is expected to close all of its roughly 2,300 stores when it files for bankruptcy later this month, according to reports.

The Topeka, Kansas-based company has been unsuccessful in finding a buyer and is planning to run going-out-of-business sales as early as next week, Reuters reported, citing sources close to the matter.

This would be the retailer's second trip to bankruptcy court. In April 2017, Payless filed for Chapter 11 bankruptcy protection to slash $800 million in debts. A group of creditors then took ownership of the company.

https://www.kmov.com/news/report-payless-expected-to-close-all-stores-after-filing-for/article_57d170da-87d3-59fe-b938-6f8de73446f3.html?fbclid=IwAR1DnIUVHvVWMFnsOAN1b8gRbQvpcwryvZog4NbvwXg0nAkNSMjphNCCprs

[underpants]

1. Ivanka will bulk buy and put them in her boxes

[rurallib]

2. having trouble finding stories but I believe it is a victim of vulture capitalism

https://www.nakedcapitalism.com/2017/09/toys-r-us-another-private-equity-casualty.html

Private Equity Greed: A Plague on Retail Businesses

Likewise, Pam and Russ Martens don’t mince words when they describe the underlying cause for this year’s wave of retail bankruptcies in their Wall Street on Parade post, How Many of 2017’s Retail Bankruptcies Were Caused by Private-Equity’s Greed?

According to S&P Global Market Intelligence, there have been 35 retail bankruptcies this year, almost double the 18 retail bankruptcies of last year. The filing by Toys ‘R’ Us this week was the latest.

What many of these retailers have in common is that they were taken private in leveraged buyouts (LBOs) by private equity (PE) firms. Toys ‘R’ Us, Payless ShoeSource, The Limited, Wet Seal, Gymboree Corp., rue21, and True Religion Apparel were all LBOs. Gander Mountain can also be included in this list if you reach back to its 1984 LBO. Far too many LBOs are simply asset stripping operations by Wall Street vultures who load the company with enormous debt, then asset strip the cash from the company by paying themselves obscene special dividends and management fees.

Payless and many others have been on the watch list after the vultures took over - list in the article

[Sherman A1]

3. Payless and so many others

have become the victims of the vultures. It is such a shame and so many jobs have been and will be lost.

[dalton99a]

4. +1