Affordable shoe store and national chain Payless Shoe Source announced that, like other retailers currently experiencing the same, the company is currently seeking out bankruptcy. The company filed a petition for Chapter 11 bankruptcy in a St. Louis court. Payless details over $10 billion in liabilities and only $1 billion in assets. Their strategy is to eliminate debt and push for more online sales to stay in the market with a competitive edge. Part of this debt elimination process would have involved the closure of over 400 brick-and-mortar locations. For scale, Payless runs over 4,400 stores nationwide.
Payless is the latest in a long list of companies, which have considered bankruptcy. Even larger, mall anchor flagship brands have taken to reducing debt to stay in the market. With the advent of affordable clothing and online accessibility, many once famous brands like American Apparel, have either shut down for good or have tried to restructure with bankruptcy.
To many, bankruptcy sounds like the worst thing a person could do. It conjures images of a complete and total shut down of one’s finances. But actually, this simply isn’t always the case. When handled property, a bankruptcy is one of the smartest financial moves one can make to save themselves or their company from truly going under. There are different forms of bankruptcy that fit different needs. For example, one form of bankruptcy allows a business to continue while paying back creditors while another goes for a complete clean slate.
If you or someone you know is in a difficult financial situation, be it personal or as a business owner, and are considering bankruptcy, it is important to discuss your options with an experienced lawyer who can help. Contact Joel R. Spivack today to discuss your case and learn more about which bankruptcy method may be best for you.
