Formerly | Payless ShoeSource Inc. |
---|---|
Company type | Private |
Industry | Shoes, socks, accessories |
Founded | 1956 |
Founders | Louis and Shaol Pozez |
Fate | U.S. and Canadian stores liquidated in 2019 due to Chapter 11 bankruptcy Relaunched in August 2020 |
Headquarters | 735 NE 125th St, North Miami, Florida, United States |
Number of locations | 3,500+ (40 countries) (2018) [1] |
Area served | 30+ countries (2019) |
Key people | Justo Fuentes (CEO) |
Revenue | US$ 3 billion (2017) [2] |
−US$149.8 million (FY2012) | |
Owners |
|
Number of employees | 18,000 (2017) [2] |
Website | www.payless.com |
Payless ShoeSource Worldwide, LLC [3] (formerly known as Payless ShoeSource Inc.), is an American multinational discount footwear chain. Established in 1956 by cousins Louis and Shaol Pozez, Payless was a privately held company owned by Blum Capital, and Golden Gate Capital. In 1961, it became a public company as the Volume Shoe Corporation, which merged with The May Department Stores Company in 1979. In the 1980s, Payless was widely known in the U.S. for its Pro Wings line of discount sneakers, which often had Velcro straps instead of laces. In 1996, Payless became an independent publicly held company. In 2004, Payless announced it would exit the Parade chain and would close 100 Payless Shoe outlets. On August 17, 2007, the company acquired the Stride Rite Corporation and changed its name to Collective Brands, Inc. [4] [5] The company had a total revenue for 2011 of US$3.4 billion. [6] The company also has a stunt premium banner, Palessi Shoes. [7] Payless is currently owned by a group of investors led by Alden Global Capital and Axar Capital Management.
It was announced on May 1, 2012, that the company would be purchased by Wolverine World Wide, Blum Capital, and Golden Gate Capital for US$1.32 billion. On December 13, 2016 it was reported that all Payless shoe stores in Australia were to be closed with the loss of 730 jobs. [6] [8] On July 14, 2014, Authentic Brands Group acquired some assets from Payless's division Collective Licensing International, LLC, which included brands such as Airwalk, Hind sports clothing, Vision Street Wear, and Above The Rim. [9]
In 2019, North American stores including their e-commerce platform filed for bankruptcy. The filing excluded stores outside of North America, which will continue to operate. [1] [10] Payless emerged from bankruptcy on January 16, 2020, and on August 18, 2020, Payless officially dropped 'ShoeSource' from its name, and launched its e-commerce website.
Circa 1962–1963, Volume Shoe company purchased the original Hill Brothers Shoe Company based in Kansas City, Missouri and converted all 25 of their stores to the "Payless" name. In 1971, Volume Shoe obtained the second Hill Brothers Shoe Store chain that was started in St. Louis, Mo in 1956 by Al Melnick and Sol Nathanson with the assistance and aid of the original Hill Brothers in Kansas City. The St. Louis version of "'Hill Brothers Self Service Shoe Store'" went from 3 to 103 stores in the Midwest and South between 1956 and 1971. Volume Shoe originally operated the 103 stores under the "Hill Brothers Self Service" name.
Starting in 1972, Volume Shoe began to consolidate stores in proximity and convert others to the "Payless" brand. The St. Louis operation of "'Hill Brothers Self Service'" stores were known for their bare bones minimalism and the slogan "two for five – man alive!", that is, women and children's shoes were two pair for five dollars. [11]
Payless bought Picway Shoes from the Kobacker department store chain in 1994. [12]
On June 27, 2006, Payless announced that it was launching a new logo created to represent a more stylish, upscale and contemporary company. This is the first rollout of stores in 2012 and beyond.[ citation needed ]
Payless, operating as Collective Brands, Inc. formed a division called Collective Licensing International, LLC (CLI) in January 2004, which was based in Englewood, Colorado. CLI held and owned various clothing and sport brands, particularly "youth lifestyle brands" and board-sport brands such as Airwalk, Vision Street Wear, Sims, Lamar and LTD, World Snowboarding Championships, Sugarboards, Carve, genetic, Dukes, Rage, Ultra-Wheels, Hind, Spot Bilt and Skate Attack. [24] The primary purpose of the division was to develop brands and provide them with marketing and branding guidance in various markets. [25]
In 2010, CLI acquired Above The Rim from Reebok International for an undisclosed amount.
On July 14, 2014, Authentic Brands Group acquired some assets from Payless's division Collective Licensing International, LLC.
In April 2017, the company, struggling with the migration of retail shopping to e-commerce, filed for Chapter 11 bankruptcy. [26] It planned to immediately liquidate nearly 400 stores in the United States and Canada.[ needs update ] Prior to the bankruptcy, heavily loaded with debt due to a private equity buy out, the company's credit rating was downgraded by Moody's. It has $100 million in loans that will come due in the next five years. [27] The company's bankruptcy announcement was part of a trend of retail closures in 2016–2017 known as the retail apocalypse. [28] [29]
Payless emerged from bankruptcy court protection in August 2017. The company was the first among a group of retailers going through bankruptcy since 2016 to successfully complete the process of restructuring. [17]
On February 14, 2019, Payless filed for bankruptcy again for a second time and this time they closed all 2,100 stores in the United States by May 2019. [30] On February 19, 2019, it announced would also close 248 stores in Canada. [10] The 790 stores across Latin America and the other stores internationally would not be affected. [31] Texas A&M University marketing professor and interim director Cheryl H. Bridges then surmised that Payless did not heed the changing retail landscape and "reinvent its stores" quickly enough to stay competitive in a more crowded market. [32]
Payless emerged from bankruptcy on January 16, 2020, with plans to re-launch a U.S. e-commerce site. [19] On August 18, 2020, Payless, officially dropping 'Shoesource' from its name, did relaunch its e-commerce website. It also announced plans to open between 300 and 500 free-standing stores in North America over the next five years. [33]
Hart Stores Inc. is a mid-sized value-driven department store in Eastern Canada. It was founded in 1960 by Harry Hart, in Rosemère, Quebec. Hart Stores is based in the provinces of Quebec, New Brunswick, and Ontario. The head office used to be in the Montreal borough of Anjou but moved to Laval, Quebec, a northern suburb of Montreal, in early 2006.
Toys "R" Us is an American toy, clothing, and baby product retailer owned by Tru Kids and various others. The company was founded in 1948; its first store was built in April 1948, with its headquarters located in Parsippany-Troy Hills, New Jersey, in the New York metropolitan area.
Bed Bath & Beyond was an American big-box retail chain specializing in housewares, furniture, and specialty items. Headquartered in Union, New Jersey, the chain operated stores in the United States and Canada, and was once counted among the Fortune 500 and the Forbes Global 2000. The chain filed for Chapter 11 bankruptcy in April 2023 and liquidated all of its remaining stores, with the last closing on July 30, 2023. Following the retail chain's liquidation, its name was adopted by online retailer Overstock.com, which acquired the company's trademarks in a bankruptcy auction. The name is also still used by the chain's former Mexican division, which is now independent.
Shopko was a chain of department stores based in Green Bay, Wisconsin. All locations closed on June 23, 2019, with the exception of the Shopko Optical locations, which continue to operate.
Wolverine World Wide, Inc. or Wolverine Worldwide, is a publicly traded American footwear manufacturer based in Rockford, Michigan. The shoemaker is known for its eponymous brand, Wolverine Boots and Shoes, as well as other brands, such as Hush Puppies, Chaco, and Merrell. The company also manufactures licensed footwear for other firms, such as Caterpillar and Harley-Davidson. In 2012, Wolverine World Wide added Saucony, Keds, Stride Rite and Sperry Top-Sider to its list of brands, after acquiring the Performance Lifestyle Group of Collective Brands in a $1.23 billion transaction that also involved the sale of Payless ShoeSource and Collective Licensing International to private equity firms Blum Capital Partners and Golden Gate Capital.
Gymboree is a sub brand of The Children's Place. Gymboree began with operating retail stores between the early 1970s and the later 2010s. It was founded by Joan Barnes.
New rue21, LLC (rue21) is a soon-to-be defunct specialty retailer of women's & men's casual apparel and accessories headquartered in the Pittsburgh suburb of Warrendale, Pennsylvania. Their clothes were designed to appeal to people who desire, wish, or feel to be 21. In 2013, Apax Partners, a global private-equity firm, acquired the company by funds advised for $42.00 per share in cash. rue21 filed for Chapter 11 bankruptcy protection on May 16, 2017, and emerged on September 22, 2017, after the company's reorganization plan was confirmed by the U.S. Bankruptcy Court for the Western District of Pennsylvania. New owners include hedge funds BlueMountain Capital Management, Southpaw Asset Management and Pentwater Capital Management. In May 2024, rue21 declared bankruptcy again, and their website became unsupportive.
Ann Inc. is an American group of specialty apparel retail chain stores for women. The company headquartered in New York City and currently operates as a subsidiary of Ascena Retail Group. The stores offer classic-styled suits, separates, dresses, shoes and accessories. The brand is marketed under five divisions: Ann Taylor, Loft, Lou & Grey, Ann Taylor Factory, and Loft Outlet.
Designer Brands Inc. is an American company that sells designer and name brand shoes and fashion accessories. It owns the Designer Shoe Warehouse (DSW) store chain, and operates over 500 stores in the United States and an e-commerce website.
The Elder-Beerman Stores Corp., commonly known as Elder-Beerman, was an American chain of department stores founded in 1883 and whose last stores closed in 2018. The chain, based primarily in the Midwestern United States, was composed of 31 stores in eight states at the time of its liquidation in 2018, and peaked around 2003 with 68 stores and $670 million in annual sales.
Vision Street Wear is an American clothing, skateboarding and BMX brand. Started in 1976 by Brad Dorfman, the company sponsored early skateboarding greats such as Mark 'Gator' Rogowski, and Mark Gonzales.
Stride Rite, formerly the Stride Rite Corporation and stylized in all lowercase, is an American children's footwear company. The company markets Stride Rite products globally through brand licensee Vida Shoes International.
Avenue Stores LLC was a specialty retailer in the United States offering plus-size clothing to women who wear larger-size clothing. The company serves a target audience of women aged between 25 and 55 years of age, wearing apparel of size 14 or larger, and also sells shoes and accessories. The group operated 222 stores in 33 states in 2019, all under the name The Avenue.
Linens 'n Things was a big-box retailer specializing in home textiles, housewares, and decorative home accessories. Based in Clifton, New Jersey, the chain operated 571 stores in 47 U.S. states and six Canadian provinces, and had 7,300 employees as of December 2006. The company's business strategy was "to offer a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs."
Collective Brands, Inc. was an American holding company that owned Payless ShoeSource, Robeez and Airwalk. The company was purchased by Wolverine Worldwide, Blum Capital, and Golden Gate Capital in 2012.
The Harford Mall is a shopping mall owned by CBL & Associates Properties that is located near the junction of Maryland Route 24 and U.S. Route 1, about 32 miles (51 km) north of Baltimore, in Bel Air, Maryland, United States. Its anchor is Macy's. It is the only shopping mall in Harford County, Maryland. The mall was built on the previous site of the Bel Air Racetrack.
Edison Brothers Stores, Inc., was a retail conglomerate based in St. Louis, Missouri. It operated numerous retail chains mainly located in shopping malls, mostly in the fields of shoes, clothing and entertainment, with Bakers Shoes as its flagship chain. The company was liquidated in 1999, though some of the chains it operated continued under different owners.
Retail apocalypse refers to the closing of numerous brick-and-mortar retail stores, especially those of large chains, beginning around 2010 and accelerating due to the mandatory closures during the COVID-19 pandemic.
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