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Payless is closing all its US stores

February 19, 2019 / Gaby Del Valle
SHARESHARESHARE

Payless ShoeSource has filed for bankruptcy and is closing all its US stores 2,100 across the country and in Puerto Rico. The company confirmed the news to CNN Business on Friday and announced the closures on Saturday. Liquidation sales began the following day and will continue through May, a spokesperson told CNN, though some stores will begin closing in March. Payless filed for bankruptcy on Monday night, CNBC reports, and has approximately $470 million in outstanding debt. There are several reasons for Payless’s demise. As the New York Times notes, brick-and-mortar stores were the core of Payless’s strategy, which may have hurt sales now that a growing number of customers prefer to shop online. (It’s worth noting that in addition to closing its physical storefronts, Payless is shutting down its online store.) The shuttering of mall department stores across the country also hurt Payless — these bigger retailers serve as “anchor stores” that drive p...