The parent company of Payless ShoeSource Canada Inc. filed for bankruptcy Monday, announcing plans to close its stores across the U.S. and Canada.
Payless has two stores in Sudbury – one in the Southridge Mall, the other in the New Sudbury Centre. The company said it plans to launch liquidation sales immediately in the U.S., and in the next few weeks in Canada. The outlets will begin closing in March as stock is sold off, with the process expected to be complete by the end of May.
“All stores across North America will be closed by the end of May,” the company said on its website. “As we wind them down, we will be conducting liquidation sales. We have wound down our e-commerce operations and will continue sell to our merchandise through third-party e-commerce channels, such as Amazon, for the time being.”
The online shopping portal is already closed, but the company is applying for permission to keep redeeming gift cards and honouring credits until March 11.
However, all sales are now final, so if you bought something at Payless recently and want to return it, you're out of luck.
“While we can’t predict exactly how long the liquidation process will take, we expect the sales to continue for most stores through May,” the post on the website said.
Payless is the latest casualty of the online retail shopping revolution that has hit malls hard. As shoppers flock to buy more and more goods online, the need for physical stores has taken a hit.
In Sudbury, the Rainbow Centre mall has worked to convert retail space to office space, while the New Sudbury Centre has lost Sears as an anchor tenant.
Payless said the new online playing field left the company unable to continue with its current business model.
“The environment in recent years for retailers has been difficult,” the company said. “While we have worked diligently with our suppliers and other partners to best position Payless for the future, we have been unable to operate our North American businesses in a way that is sustainable.”
While shutting down in North America, Payless will continue in Latin America, where access to online shopping is less widespread.
