Payless Files for Bankruptcy in St. Louis

  • Challenging retail environment ‘will only intensify,’ CEO says
  • Company says creditors back bid to reduce debt by almost half

Payless Inc., the discount shoe seller, filed for bankruptcy with a plan to slash debt by almost 50 percent as the retail spiral persists.

Payless listed liabilities of $1 billion to $10 billion in Chapter 11 documents filed Tuesday in St. Louis bankruptcy court. The chain said in a statement that its restructuring proposal has the support of investors holding about two-thirds of its first-lien and second-lien term debt. The agreement, if carried out, will reduce interest costs and give the company access to capital, according to the statement.

Under the plan, Payless will immediately close about 400 underperforming stores in the U.S. and Puerto Rico…

Payless Files for Bankruptcy in St. Louis

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