Beloved Indiana retailer Payless Shoes has filed for their second bankruptcy filing in the last two years. The current filing will likely be a total liquidation that will cause their stores to be closed throughout the United States.
Although the first Payless Shoes bankruptcy filed in 2017 was somewhat of a success, it left them with an untenable $400 million in debt. This debt load caused the ultimate failure, debts not being sufficiently reduced with the former filing. The retailer continued operations in hopes that they could continue their discount retail system throughout the country. Due to various changes in the retail economy and the large debt load still saddled to the company, this attempt failed to save the beloved retailer from it’s impending Financial collapse.
Payless Shoes has approximately 25 locations throughout Indiana. There are also approximately 12 locations in the Indianapolis greater area. All of these locations will be closing, affecting the availability of discount shoe retail options in the area. It will also cause a loss of numerous local jobs. This retailer has been a staple in Indiana for a quite some time, the business being in operation throughout the US for over 60 years.
Bankruptcies such as Payless Shoes have frequently been attributed to the fact that there has been a major retail shift throughout the country. Through the increase of online retail transactions, traditional retailers such as Payless are at a significant disadvantage. They are also finding themselves saddled with untenable debt situations due to the inability to adapt to the changing climate throughout the retail market.