Yet another national retail chain is struggling financially and reportedly ready to close hundreds of stores across the country. Payless, Inc. parent to thousands of Payless Shoe stores including two here in Berrien County, is reported to be on the verge of filing for bankruptcy with hundreds of store closings coming soon.
It marks the second time this month that a major retailer with a presence in The Orchards Mall in Benton Charter Township faces the tough decisions of which stores to keep and which will be jettisoned.
Bloomberg news reported six weeks ago that Payless was purportedly in discussions with lenders regarding the potential for restructuring through bankruptcy proceedings. At that time the company was allegedly looking at closing as many as 1,000 of its 4,400 stores. Updated reports this week, however, show that the number is closer to 400 to 500 stores thanks to restructuring analysis.
Reuters had reported at the beginning of the year that Payless was working under a debt-load in excess of $660-million.
Locally, Payless Shoes has stores in both The Orchards Mall and at 2706 S. 11th Street in Niles, both of which have been in business for many years and have been quite successful.
Payless, Inc. is based in Kansas and has been a presence on the American retail scene for more than 60 years, launching first in 1956.
Earlier this month the JCPenney store in The Orchards Mall was saved from the chopping block at that major retailer which is closing 138 stores. The Benton Harbor store was not one of those targeted by Penney.
The Payless Shoes manager at 1800 Pipestone in Benton Harbor was out sick today, but an employee filling in said that she had heard nothing regarding any potential closure. In fact, the front desk there is sporting a card featuring job offers in the store as they gear up for summer. Potential employees are encouraged to apply at the store during regular business hours.
