"Payless ShoeSource is the largest specialty family footwear retailer in the Western Hemisphere, offering a trend-right and comprehensive range of everyday and special occasion shoes and accessory items at affordable prices for every member of the family. The company’s mission is simple: To be the Go To, Get More, Pay Less shoe store for our target customers.
How We Got Here
Payless was founded in 1956, in Topeka, Kan. on a revolutionary idea – selling quality shoes at affordable prices in a self-select environment. More than 60 years later, Payless continues the self-select model combined with leading customer service to provide a fun and engaging shopping experience for its customers. Today, Payless employs nearly 22,000 associates worldwide and is a privately held company owned by Golden Gate Capital and Blum Capital Partners". From website.
BDC Credit Reporter View
Payless filed for Chapter 11 bankruptcy protection in April 2017. The Company announced its intention to close 400 stores out of 4,400 in 30 countries. The Company's restructuring plan involves cutting its heavy debt load by 50%. Additionally, the retailer has negotiated agreements with some existing lenders to obtain up to $385 million of debtor-in-possession financing. That includes $305 million of asset-based financing and an $80 million new term loan. In total, the debtor-in-possession financing had given Payless up to $120 million in incremental liquidity during the Chapter 11 process, the company said. The funds are being used to pay suppliers and other vendors.