Payless gets OK for wind-down of stores
A U.S. Bankruptcy Court has approved Payless ShoeSource’s first day motions related to its Chapter 11 bankruptcy filing.
The approvals at the court hearing in St. Louis, Missouri will support the retailer’s efforts to wind-down its approximately 2,500 stores in the U.S., Puerto Rico and Canada, as well as its e-commerce operations. (Payless’ retail operations outside of North America, including its company-owned stores in Latin America, are separate legal entities and are not included in the Chapter 11 or Canadian filings.”
The initial relief includes authorization to support Payless’ operations during the process, continue payment of employee wages and maintain employee benefits and pay claims of critical vendors. The court also approved procedures and policies for U.S. store closing sales, and certain other relief customary in these circumstances.
Payless said it will continue to honor customer gift cards and store credit until March 11, 2019, and to continue to allow returns and exchanges of applicable non-final sale purchases made prior to February 17, 2019, until March 1, 2019.
The footwear retailer announced that the company and its North American subsidiaries filed for Chapter 11 bankruptcy protection, with plans to close its approximately 2,500 store locations in North America and exit its e-commerce operations
"We are pleased that the Court has approved our First Day motions, which are a crucial step in our execution of an efficient wind-down of our North American stores and e-commerce operations, and to maximize the value of the merchandise being sold,” said Stephen Marotta, chief restructuring officer of Payless.”
The approvals at the court hearing in St. Louis, Missouri will support the retailer’s efforts to wind-down its approximately 2,500 stores in the U.S., Puerto Rico and Canada, as well as its e-commerce operations. (Payless’ retail operations outside of North America, including its company-owned stores in Latin America, are separate legal entities and are not included in the Chapter 11 or Canadian filings.”
The initial relief includes authorization to support Payless’ operations during the process, continue payment of employee wages and maintain employee benefits and pay claims of critical vendors. The court also approved procedures and policies for U.S. store closing sales, and certain other relief customary in these circumstances.
Payless said it will continue to honor customer gift cards and store credit until March 11, 2019, and to continue to allow returns and exchanges of applicable non-final sale purchases made prior to February 17, 2019, until March 1, 2019.
The footwear retailer announced that the company and its North American subsidiaries filed for Chapter 11 bankruptcy protection, with plans to close its approximately 2,500 store locations in North America and exit its e-commerce operations
"We are pleased that the Court has approved our First Day motions, which are a crucial step in our execution of an efficient wind-down of our North American stores and e-commerce operations, and to maximize the value of the merchandise being sold,” said Stephen Marotta, chief restructuring officer of Payless.”