Payless Bankruptcy Update: How Long Can You Use Gift Cards Or Make Returns?

With Payless ShoeSource closing all of 2,500 U.S. and Canadian stores amid filing Chapter 11 bankruptcy protection on Monday afternoon, customers have a limited amount of time to cash in gift cards and make returns.

Store closings will begin at the end of March but many stores will remain open through the end of May as liquidation sales progress. The company has also stopped selling merchandise online.

Payless has asked the bankruptcy court to allow it to continue to honor customer gift cards as well as in-store credit until March 11. It is also requesting that returns and exchanges be allowed until March 1 of any products that were purchased prior to Feb. 17.

The use of customer coupons and rewards has been discontinued immediately with the filing of bankruptcy on Monday, according to the company.

While it remains to be seen if the bankruptcy court will allow for gift cards to be honored and exchanges and returns to be made, it is suggested that consumers head to their local Payless store to complete these transactions before time runs out.

If you are looking to use your gift card for online purchases at Payless.com, you are out of luck as all online orders at Payless.com ceased on Friday.

For now, some Payless products are still available on Amazon. Amazon is fulfilling Payless shoes and accessories, depending on style, color, and size, and will allow for returns through its site.

Payless will continue to operate 420 stores in Latin America as well as its stores in the U.S. Virgin Islands, Guam, and Saipan. The company also has 370 international stores in 16 countries located in the Middle East, India, Indonesia, Indochina, Philippines, and Africa that will remain open and unaffected by the U.S. and Canadian bankruptcy filing.