Another household retail name is shutting down. Payless Shoesource has reportedly filed for Chapter 11 bankruptcy.
In a fast-paced retail business, Payless, a store that is native to malls, is struggling to adapt against e-commerce giants, like Amazon, who seem to be even faster than fast fashion.
In a report by Bloomberg, the company filed the bankruptcy in order to protect the popular shoe chain's assets. Payless originated from Topeka, Kansas and has over 4000 stores all over the world. They are set to shutter some of its underperforming stores to prevent further negative cash flow within the company.
However, according to Business World, SSI Group Inc., the company handling local Payless operations, states that the Philippine branches are not affected by the bankruptcy filing of the said company. In fact, they plan to add more locations in addition to its 75 stores across the country.
Payless was a part of Collective Brands Inc. until 2012 when Golden Gate Capital and Blum Capital bought the company in a $2 billion deal. Payless joins other retail giants Aeropostale, American Apparel, and PacSun who have also filed for bankruptcy protection.