Another Canadian company is reportedly bankrupt and set to close up shop. Payless Shoes has confirmed that it will be closing all of its nearly 250 Canadian stores due to bankruptcy. The shoe company will be entering the bankruptcy and creditor protection process, according to CBC News. The chain has been operating for over 60 years since it first started in 1956 and its reign in North America is now coming to its end.
Payless Shoes has also filed for bankruptcy down south in the U.S., according to Global News. A total of 2,500 Payless stores will be closed across North America this spring. The company says stores will start being shut down next month at the end of March. However, Latin American stores will stay open are Payless intends to keep operating in the region.
Canadian shoppers can expect major discounts on shoes because the shoe chain has said that is will be holding liquidation sales as stores close. They will be keeping some stores open till the end of May for liquidation sales, according to Global News.
Payless Shoes employs around 2,400 workers in Canada and has 248 stores across the country, according to Global News.
Documents filed by the company to the Ontario Superior Court show that the shoe chain was unable to pay rent last month in February for 220 Canadian stores, which makes up almost all of its Canadian locations, according to Global News. It also reported that in 2018, the company operated at a loss of over $12 million USD in the U.S.
The documents also revealed that the shoe chain had too much inventory this past winter and as a result, had to sell their shoes at significant markdowns, according to Global News.
Payless is not the only Canadian chain to go down in business recently. Several stores have filed for bankruptcy or bankruptcy protection in the past few months. Another shoe company, Town Shoes, closed down last month in January. Several retailers, such as J. Crew have also been shutting down stores across Canada.