Discount shoe retailer Payless ShoeSource may be preparing to file for its second bankruptcy since 2017, which could include the offloading of the majority of its stores in the process. The bankruptcy could come within the next two weeks, a source told CNBC.
Through the bankruptcy, Payless is reportedly looking to sell its store locations throughout certain regions. However, the discount shoe retailer may need to close the majority or possibly all of its U.S. brick-and-mortar locations, the news outlet reported.
The bankruptcy plans are not certain for Payless if it can find a suitable buyer for the entire company, according to the source. Currently, the company is looking to secure a loan to move through the bankruptcy process as well as finalize the details to shutter stores, a source told Bloomberg.
Payless is just one of a string of retailers to fall victim to bankruptcy in 2019. Other retailers with bankruptcy plans include Shopko, FullBeauty Brands, Charlotte Russe, Things Remembered, and Gymboree. Sears received approval on Thursday from a federal bankruptcy judge for its October Chapter 11 filing.
When Payless filed for bankruptcy in 2017, it closed nearly 400 stores. Currently, it has more than 2,700 stores in North America and 3,600 stores worldwide. It employs 18,000 employees globally.
This article was first published in IBTimes US. Permission required for reproduction.