Payless ShoeSource is closing all of its stores in North America, including those in Windsor, Chatham and London.
The 62-year-old Kansas-based discount footwear retailer is filing for creditor protection in Canada and bankruptcy in the U.S. and will start closing all 2,500 North American stores starting at the end of March.
“The challenges facing retailers today are well documented, and unfortunately Payless emerged from its prior reorganization ill-equipped to survive in today’s retail environment," he said. "The prior proceedings left the company with too much remaining debt, too large a store footprint and yet-to-be-realized systems and corporate overhead structure consolidation."
In a news release, Payless said all of its North American stores will close by the end of May, E-Commerce operations have been wound down, but the Latin American stores and international franchise stores will remain open and continue business as usual.
Payless has about 2,400 workers in Canada and owns 248 stores.
"We have worked diligently with our suppliers and other partners to best position Payless for the future amidst significant structural, operational, and market challenges," said Stephen Marotta, the chief restructuring officer for Payless. "As we move through the process, we will work to minimize the impact on our employees, customers, vendors and other stakeholders."
The company is seeking authorization from the courts to continue honouring customer gift cards and store credit until March 11, and to continue allowing returns and exchanges of applicable non-final sale purchases made prior to February 17 until March 1. Payless has also discontinued its Rewards programs and any outstanding merchandise coupons in North America, effective immediately.
