Discount shoe chain Payless ShoeSource announced Tuesday it will close all 2,500 of its North American stores, including its two locations in Guelph.
The company filed for Chapter 11 bankruptcy protection in April of 2017. In a letter to customers posted to its web site on Tuesday, Payless said it is unable to operate its North American business on a sustainable basis.
“Unfortunately, we emerged from the prior reorganization ill-equipped to survive in today’s retail environment, with too much remaining debt, too large a store footprint and a yet-to-be realized systems and corporate overhead structure consolidation,” said Payless in the letter.
The company will close all 248 Canadian stores and all 2,500 of its retail locations in the United States, Canada and Puerto Rico.
The company has two retail stores in Guelph, one in the Stone Road Mall and another on Woodlawn Road W. at Woolwich Street.
“Stores across North America remain open at this time, and we are conducting liquidation sales that will continue until at least the end of March, with most continuing through the end of May,” said Payless.
The company is seeking authorizations from courts to be able to continue honouring gift cards and store credit until March 11, 2019 and to allow returns and exchanges of purchases made prior to Feb. 17, 2019.
“We have discontinued our Rewards program and terminated all outstanding merchandise coupons in North America, effective immediately,” said Payless.
Payless was founded in 1956 in Topeka, Kansas. In the letter, the company extended its appreciation to its customers and hard working sales associates for their loyalty and support over the years.
