Payless ShoeSource Emerges From Bankruptcy: Is A U.S. Comeback Possible?

Payless ShoeSource is back after filing bankruptcy in February 2019. The retailer announced it has emerged from Chapter 11 and is ready to begin its trek back to the U.S. market.

At the time of its bankruptcy filing, Payless closed all 2,500 stores in the U.S. and Canada, while continuing to operate 710 locations in Latin America, Southeast Asia, and the Middle East.

Now that Payless has emerged from bankruptcy, the company said it has plans in place to consider new technologies and enhance the customer experience while offering exclusive products at affordable prices across all its global distribution channels.

The shoe and accessory retailer has also announced a new executive management team that will be led by CEO Jared Margolis while the company’s Latin America business unit will have Justo Fuentes at the helm as LATAM CEO.

“I am pleased to have the opportunity to lead this iconic retail brand into a new strategic phase with a strengthened balance sheet and clean financial outlook,” Margolis said in a statement. “We will implement a new comprehensive strategic plan to strengthen our relationship with our vendors and suppliers, support our global franchise partners and deepen the trust of our customers.”

Margolis also said that Payless will leverage its existing product design and development, distribution, marketing, and footwear maker relationships to allow the company to be “nimble, innovative, and to fast-track our biggest growth opportunity: The United States.”

Nearly a year after filing bankruptcy, Payless said its global footprint has sold about 25 million pairs of shoes in the last 12 months, with 11 million customers purchasing products in the past year.