Payless ShoeSource
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Payless (formerly known as Payless ShoeSource Inc.) is an international discount
footwear Footwear refers to garments worn on the feet, which typically serves the purpose of protection against adversities of the environment such as wear from ground textures and temperature. Footwear in the manner of shoes therefore primarily serves th ...
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 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. History Founding an ...
and changed its name to Collective Brands, Inc. The company had a total revenue for 2011 of
US$ The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
3.4 billion. The company also has a stunt premium banner, Palessi Shoes. 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 were to be closed in Australia with the loss of 730 jobs. 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. 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. Payless emerged from bankruptcy on January 16, 2020, and on August 18, 2020, Payless officially dropped 'ShoeSource' from its name, and launched its
ecommerce E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain managemen ...
website.


History


Acquisitions

Circa 1962–63, Volume Shoe company purchased the original Hill Brothers Shoe Company based in
Kansas City, Missouri Kansas City (abbreviated KC or KCMO) is the largest city in Missouri by population and area. As of the 2020 census, the city had a population of 508,090 in 2020, making it the 36th most-populous city in the United States. It is the central ...
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. Payless bought Picway Shoes from the Kobacker department store chain in 1994.


Key dates

* 1956: Pay-Less National is founded in Topeka, Kansas, by two cousins, Louis and Shaol Pozez, to open self-service stores selling budget footwear. * 1962: The company goes public as Volume Distributors. * 1967: The company is renamed Volume Shoe Corporation; an accelerated expansion program is launched. * 1971: Volume Shoe Corp. acquires the St. Louis based Hill Brothers Self Service Shoe Store * 1978: The Payless ShoeSource name is adopted for the bulk of the company's retail outlets. * 1979: Volume Shoe is acquired by the May Department Stores Company. * 1991: The company name is changed to Payless ShoeSource, Inc. * 1996: May spins Payless off to shareholders, making it once again an independent, publicly traded firm. * 1997: The mid-priced shoe chain Parade of Shoes is acquired from J. Baker, Inc.; the first Canadian Payless stores open. * 1999: The firm launches e-commerce at payless.com; Payless opens locations on the sales floor inside Shopko discount stores, replacing J. Baker. * 2000: Payless enters into a joint venture to expand into the Central American region. * 2004: As part of a major restructuring, Payless announces that it will close down the Parade chain and close hundreds of Payless outlets. * 2012: Collective Brands Inc., which owns footwear brands such as Sperry Top-Sider and Keds as well as the retailer Payless, will be split in two by multiple buyers, Wolverine Worldwide, Blum Capital and Golden Gate Capital, in a purchase valued at $2 billion, including debt. * 2017: Payless ShoeSource filed for
Chapter 11 bankruptcy Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...
and closed 673 stores nationwide. * 2019: Payless filed for a second bankruptcy and closed all their remaining stores in the United States and Canada. *2020: Payless emerges from bankruptcy and plans to re-launch a U.S. e-commerce site. *August 18, 2020: Payless announces relocation of company headquarters from Topeka, Kansas to Edgewater, Florida.


Expansion

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. *
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
: At the end of 2018, Payless had 248 stores in Canada, however, it was announced in February 2019 that all of the stores would be closed. *
Eastern Caribbean The Organisation of Eastern Caribbean States (OECS; French: ''Organisation des États de la Caraïbe orientale'', OECO) is an inter-governmental organisation dedicated to economic harmonisation and integration, protection of human and legal ri ...
: In 2014, Payless opened its first store in St. Lucia at the Baywalk Mall in Gros-Islet. This is one of two Payless stores located on the island of St. Lucia. Antigua, Grenada, St. Kitts, Dominica and St. Vincent all have one store each. *
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
: In 2013, Payless ShoesSource bought Payless Shoes Australia's full 150 stores, which has operated since 1980 out of administration. Previously, these two companies did not have any affiliation. On December 13, 2016, it was reported that all Payless shoe stores were to be closed in Australia with the loss of 730 jobs. *
Trinidad and Tobago Trinidad and Tobago (, ), officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean. Consisting of the main islands Trinidad and Tobago, and numerous much smaller islands, it is situated south of ...
: Payless has a total of 22 stores across Trinidad and Tobago, having first opened its doors in 2001. *
Barbados Barbados is an island country in the Lesser Antilles of the West Indies, in the Caribbean region of the Americas, and the most easterly of the Caribbean Islands. It occupies an area of and has a population of about 287,000 (2019 estimate). ...
: In 2012, Payless expanded into the Barbados market by opening the first ten-employee store at Haggatt Hall,
St. Michael Michael (; he, מִיכָאֵל, lit=Who is like El od, translit=Mīḵāʾēl; el, Μιχαήλ, translit=Mikhaḗl; la, Michahel; ar, ميخائيل ، مِيكَالَ ، ميكائيل, translit=Mīkāʾīl, Mīkāl, Mīkhāʾīl), also ...
. This has since grown to 5 stores across the island. *
Jamaica Jamaica (; ) is an island country situated in the Caribbean Sea. Spanning in area, it is the third-largest island of the Greater Antilles and the Caribbean (after Cuba and Hispaniola). Jamaica lies about south of Cuba, and west of His ...
: Payless opened in Jamaica in January 2011, and today has a total of 15 stores on the island. *
Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...
: As of March 2019, Payless has 76 stores in the
Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...
. *
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, and
Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
: In April 2011, Payless launched its first store in
Jakarta Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital and largest city of Indonesia. Lying on the northwest coast of Java, the world's most populous island, Jakarta ...
, Indonesia followed by one store in
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and Singapore within the same year and under the same management. Payless operates 19 stores throughout Indonesia currently. *
Thailand Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is bo ...
: The Central Marketing Group (CMG), a business unit of the
Central Group Central Group consists of a variety of diverse investments in various corporations in Thailand and abroad, including investments in retail, property development, brand management, hospitality, and food and beverage sectors, and in digital lifes ...
, has signed a franchise agreement with Kansas-based Payless that will see outlets next year in
Bangkok Bangkok, officially known in Thai language, Thai as Krung Thep Maha Nakhon and colloquially as Krung Thep, is the capital and most populous city of Thailand. The city occupies in the Chao Phraya River delta in central Thailand and has an estima ...
Chonburi Chonburi ( th, ชลบุรี, , IAST: , ) is the capital of Chonburi Province and Mueang Chonburi District in Thailand. It is about 100 km southeast of Bangkok, on the coast of the Gulf of Thailand. Its name means 'city of water'. Chonb ...
, making
Thailand Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is bo ...
its 15th franchise country. It will also adopt Payless's new Hot Zone format and purchase products directly from the seasonal assortments, with slight adjustments for local needs. *
United Arab Emirates The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...
: It belongs to AlShaya group in the UAE. It has opened different branches in Dubai Mall, Mirdif City Center and Sahara Center, and also in Bawadi Mall in Al-Ain City. File:Interior, Payless store, Mount Vernon, Virginia.jpg, Interior of a Payless ShoeSource in Groveton, Virginia File:PaylessShoeSourceFairview.jpg, Payless ShoeSource in Fairview Mall, Canada. File:PAYLESSrd.jpg, Payless in
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,
Dominican Republic The Dominican Republic ( ; es, República Dominicana, ) is a country located on the island of Hispaniola in the Greater Antilles archipelago of the Caribbean region. It occupies the eastern five-eighths of the island, which it shares wit ...


Collective Licensing International, LLC

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. The primary purpose of the division was to develop brands and provide them with marketing and branding guidance in various markets. In 2010, CLI acquired Above The Rim from
Reebok Reebok International Limited () is an American fitness footwear and clothing manufacturer that is a part of Authentic Brands Group. It was established in England in 1958 as a companion company to J.W. Foster and Sons, a sporting goods company ...
International for an undisclosed amount. On July 14, 2014, Authentic Brands Group acquired some assets from Payless's division Collective Licensing International, LLC.


2017 bankruptcy

In April 2017, the company, struggling with the migration of retail shopping to e-commerce, filed for
Chapter 11 bankruptcy Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...
. It planned to immediately liquidate nearly 400 stores in the United States and Canada. 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. The company's bankruptcy announcement was part of a trend of retail closures in 2016–2017 known as the retail apocalypse. 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.


2019 bankruptcy and revival in 2020

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. On February 19, 2019, it announced would also close 248 stores in Canada. The 790 stores across Latin America and the other stores internationally would not be affected.
Texas A&M University Texas A&M University (Texas A&M, A&M, or TAMU) is a public, land-grant, research university in College Station, Texas. It was founded in 1876 and became the flagship institution of the Texas A&M University System in 1948. As of late 2021, T ...
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. Payless emerged from bankruptcy on January 16, 2020, with plans to re-launch a U.S. e-commerce site. On August 18, 2020, Payless, officially dropping 'Shoesource' from its name, did relaunch its
e-commerce E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
website. It also announced plans to open between 300 and 500 free-standing stores in North America over the next five years.


References


External links


Collective Brands corporate site

New official websiteOfficial website
)
Palessi Shoes

History of Payless ShoeSource, Inc.
– FundingUniverse {{DEFAULTSORT:Payless Shoesource 1956 establishments in Kansas 2007 mergers and acquisitions 2012 mergers and acquisitions Australian companies disestablished in 2016 American companies established in 1956 Clothing companies established in 1956 Retail companies established in 1956 Companies based in Topeka, Kansas Companies formerly listed on the New York Stock Exchange Companies that filed for Chapter 11 bankruptcy in 2017 Companies that filed for Chapter 11 bankruptcy in 2019 Footwear retailers of the United States Footwear retailers Retail companies of Canada Retail companies of the Philippines Shoe companies of Canada Shoe companies of the United States Re-established companies