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

Councillor Gambell raises motion to fit busses with seat belts

The motion was passed on Tuesday’s council meeting

FormaShape snuffs small electrical fire

Fire department responds to fire in Lake Country for precautionary measures

Melcor Developments supports YMCA Strong Kids with generous $9,000 donation

Local business raises funds to enrich community through YMCA services

Boil water notice extended into Kelowna’s northern boundary

City of Kelowna extends boil water notice to over 100 residences in northern boundary of Kelowna

Kelowna Memorial Cup committee visits 2019 tournament in Halifax

The committee wants to get a first-hand look at how the tournament is organzied

600 new campsites coming to provincial parks and recreation sites across B.C.

Tourism Minister announced half of the new spots to 13 most popular provincial parks

Raptors beat Bucks 105-99 to move within 1 game of NBA Finals

Leonard scores 35 as Toronto takes 3-2 series lead over Milwaukee

Okanagan housing builds hope for 52 homeless individuals

The 52 unit supported housing apartment officially opens in Vernon

Gardens plant hope for Okanagan residents who were once homeless

Turning Points, in collaberation with Briteland, bring square foot gardening to Blair Apartments

Bear spray culprit released from Penticton RCMP custody

The individual who sprayed the bear spray at Compass House on May 22 has been released

Municipalities protest after B.C. declares marijuana crops ‘farm use’

UBCM president seeks answers in letter to John Horgan government

RCMP set to patrol Okanagan lakes

Vernon-North Okanagan members will be on area waters helping keep boaters safe

Summerland students to raise voices in public speech competition

Public speaking component is included in high school English program

CMHC defends mortgage stress test changes amid calls for loosening rules

Uninsured borrowers must now show they could service their mortgage if rates rose two per cent

Most Read