Thu | Mar 21, 2019

Payless closure won't affect Caribbean and Latin America

Published:Wednesday | February 20, 2019 | 2:15 PM
Gladstone Taylor photo

Payless ShoeSource is reporting that the decision to close stores in the United States and Puerto Rico will not affect operations in the Caribbean and Latin America.

All 2,100 stores in the US and Puerto Rico will be closed by May and Payless also plans to pull its online operations.

Payless has voluntarily filed for relief under Chapter 11 bankruptcy in the Eastern District of Missouri.

Mario Zarazua, Chief Financial Officer for Payless, in a statement yesterday said that the company is committed to continued growth in Latin America and the Caribbean.

Zarazua said it plans to expand its footprint in the region.

 “We look forward to building upon our success in these regions by adding new stores and a broader online reach.

“While Payless’ North American stores have faced difficulty, due to a challenging retail environment, our thriving businesses in Latin America and the Caribbean have considerable profitable growth potential and remain an integral part of our long-term strategy.”

Payless said that it has 420 stores across 20 countries in Central and South America and the Caribbean.

The company said it opened 19 stores in eight countries in 2018 and plans to open new stores this year in countries where it already has a presence. 

The chain, which filed for Chapter 11 bankruptcy in 2017, is planning to hold liquidation sales.

Two years ago, Payless boasted over 4,400 locations in over 30 different nations.

Despite slashing 900 stores and $435 million in debt at the time, the company has continued to struggle to stay fiscally afloat in the competitive market.

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