Payless Shoes is no longer bankrupt and might make a comeback

Payless ShoeSource has emerged from Chapter 11 bankruptcy protection after almost a year. The company voluntarily filed for Chapter 11 in February 2019, closing all 2,100 of its stores in the U.S.

Now, the discount footwear retailer is out of bankruptcy and has a new management team. The new team is led by CEO Jared Margolis, previously of licensing agency CAA-GBG. Payless Latin America will be led by Justo Fuentes, previously president of BATA Latin America.

Payless and its franchises currently own and operate 710 stores in 30 countries across Latin America, Southeast Asia, and the Middle East. The company will unveil a new retail strategy this year, according to a statement, with the intention of re-building its presence both in the U.S. and internationally.

"The Payless brand stands for design, quality and value, and we plan to reinvigorate that proposition for our customers all over the world,” Margolis stated.

The company stated that the new Payless strategy will include collaborations with "high-profile individuals and brands to ensure exclusive product offerings at a compelling price-point for its loyal base." Payless also said that it is "in the process of considering new technologies to streamline and optimize the customer experience," and that its new approach will be implemented across all distribution channels in all markets.

Margolis added, "We will implement a new comprehensive strategic plan to strengthen our relationship with our vendors and suppliers, support our global franchise partners and deepen the trust of our customers. We intend to leverage Payless’ existing infrastructure, which is best in class and already includes product design & development, distribution, marketing, and a strong relationship with major footwear manufacturers. Thus, providing the new Payless with the ability to be nimble, innovative, and to fast-track our biggest growth opportunity: The United States."

Photo: Payless Shoesource facebook