Payless to close 248 Canadian stores, saying it’s ‘ill-equipped’ for market

The company will begin closing stores at the end of March

Payless ShoeSource Canada Inc. says it will soon file for creditor protection in Canada and close all 2,500 of its North American stores this spring.

The Kansas-based company’s chief restructuring officer Stephen Marotta says in a release that the closures are happening because a prior reorganization left the company “ill-equipped” for today’s retail environment with too much remaining debt and too large a store footprint.

Documents filed with the Ontario Superior Court show the company had an oversupply of inventory as recently as this winter and was forced to sell merchandise at steep markdowns.

READ MORE: Toys “R” Us files for bankruptcy protection in U.S.; plans to follow suit in Canada

READ MORE: Sears Canada looks to suspend benefits for retirees

The company, which has also filed for bankruptcy in the U.S., says it will begin closing stores at the end of March, though some will be open until the end of May while it conducts liquidation sales.

Documents show the brand employs about 2,400 workers in Canada and owns 248 stores in the country.

The documents say the company has failed to pay February’s rent for 220 of its stores in Canada and reported an operating loss of more than US$12 million last year.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

School District announces staffing changes

Paul Luck and Monica Doyle have been named principals of Trafalgar, South Nelson

David Hogg named Nelson’s 2018 Citizen of the Year

Hogg has led the Kootenay Kiltie Pipe Band for 30 years

Two missing in Pend d’Oreille crash

A 15-year-old male and 18-year-old female both from Fruitvale are missing and presumed deceased

LETTERS: Joining climate strike wasn’t skipping school

From readers Loreena Semple and Art Joyce

VIDEO: RCMP ask kids to help name soon-to-be police dogs

13 German shepherd puppies will be born this year

British Columbia Teachers’ Federation welcomes new leader

Teri Mooring will take over as president this summer

Disappearance of Merritt cowboy now deemed suspicious: police

Ben Tyner was reported missing when his riderless horse was discovered on a logging road

Distillers hope federal budget scraps alcohol escalator tax

Tax hike set for April 1, marking third automatic increase in three years time

Kids found playing darts with syringes in Vancouver Island park

Saanich police is urging people to throw out their syringes properly and safely

‘The whole city has changed:’ B.C. woman in New Zealand reacts to mosque attacks

An expatriate and Muslim students at UBC Okanagan deeply affected by white supremacist shooting

Trudeau condemns hateful, ‘toxic segments’ of society after New Zealand shooting

Prime Minister expressed sorrow at the many attacks in recent years

Air Canada grounds its Boeing Max 8s until at least July 1 to provide certainty

Airlines around the world have been working to redeploy their fleets since their Max 8s were grounded last week

Budget to tout Liberal economic record, provide distraction from SNC furor

This is the Liberal government’s fourth and final budget before the election

Most Read