Bankruptcy

Payless: Fighting the Label of Another Bricks and Mortar Store Gone Under

By: Jasmine Little*| Guest Writer

By BentleyMall (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

By BentleyMall (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

 

Another one bites the dust. Payless ShoeSource, the largest chain for footwear, recently filed chapter 11 bankruptcy in April of 2017. The chain has high hopes to avoid being labeled as one of the many bricks and mortar focused retail companies that permanently closes its doors, like Sports Authority Holdings Inc. and Wet Seal. However, the odds are not in the chain’s favor. Not only has Payless’ bankruptcy plan prompted questions from its unsecured creditors but the retail market in general is seeing a soar in bankruptcy filings and store closings. The retail industry is most susceptible to liquidating its assets and shutting down permanently after filing bankruptcy than is any other sector of the market. AlixPartners firm research study found that once a retail company files for bankruptcy, there is a about a fifty-five percent chance that it will never reopen.

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