Pursuits
Payless Files for Bankruptcy in St. Louis
- Challenging retail environment ‘will only intensify,’ CEO says
- Company says creditors back bid to reduce debt by almost half
Shoe Retailer Payless Files for Bankruptcy
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Payless Inc., the discount shoe seller, filed for bankruptcy with a plan to slash debt by almost 50 percent as the retail spiral persists.
Payless listed liabilities of $1 billion to $10 billion in Chapter 11 documents filed Tuesday in St. Louis bankruptcy court. The chain said in a statement that its restructuring proposal has the support of investors holding about two-thirds of its first-lien and second-lien term debt. The agreement, if carried out, will reduce interest costs and give the company access to capital, according to the statement.