Payless ShoeSource Stores in San Angelo Among 400 to Close
SAN ANGELO, TX - Two San Angelo Payless ShoeSource locations, inside Sunset Mall and on Southland Blvd., will be closing for good. They are two out of 400 stores closing nationwide.
According to a media release from the company, on April 4, 2017, Payless' North American entities, including two foreign Hong Kong-based entities, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri "to facilitate the financial and operational restructuring necessary to strenghten its balance sheet and position the company for long-term success."
Payless is also filing for recognition of the U.S. Chapter 11 proceedings under Part IV of the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice.
Company officials stated, "Payless will continue to operate its business in the ordinary course in terms of its customers, vendors, partners and associates, and, subject to court approval, expects to continue providing associate wages, healthcare coverage, and other benefits without interruption; honoring pre-petition obligations to customers, including all gift cards with Payless stores and Payless.com; and paying vendors and suppliers in the ordinary course for all authorized goods and services provided on or after the date of the Chapter 11 filing."
Payless officials also noted, "We intend to use the Chapter 11 process to implement a comprehensive path forward to meaningfully enhance our growth profile and profitability, positioning us to continue to thrive as a sustainable business in the face of the retail industry's radical, unprecedented transformation."
According to the release, Payless has the support of its senior lenders for a consensual restructuring through a Plan Support Agreement (PSA) to reduce debt, materially lower annual cash interest costs, access significant additional capital, and provide a clear path to emergency on an expedited basis.
"Payless has also negotiated agreements with certain of its existing lenders to provide the company access of up to $385 million of Debtor-in-Possession financing.
For more information on the closure, people can contact the restructuring information line at (844)648-5574, or visit here for Consumer FAQ questions and answers.
Overall, 66 stores in Texas will close, including the one in Big Spring, Brownwood, and one in Lubbock. For the list of closures, click here.
LIVE! attempted to contact the two local stores for comment. One store location did not answer, and a representative at the mall location said, "I can't comment on that." He then immediately disconnected the call.
However, on the business's web site, Paul Jones, Payless Chief Executive Officer, stated, "This is a difficult, but necessary decision driven by the continued challenges of the retail environment, which will only intensify. We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process. While we have had to make tough choices, we appreciate the substantial support we have received from our lenders who share our belief that we have a unique opportunity to enable Payless--the iconic American footwear retailer with one of the best-recognized global brands--to remain the go-to shoe store for customers in America and around the globe."
For people in the San Angelo area who enjoy shopping at Payless ShoeSource, they can continue to do so online at www.payless.com.