Payless ShoeSource files Chapter 11 bankruptcy - KCTV5

Payless ShoeSource files Chapter 11 bankruptcy

Posted: Updated:
In a news release Tuesday, the company said it would continue to operate its business in the ordinary course in terms of its customers, vendors, partners and employees. (File photo) In a news release Tuesday, the company said it would continue to operate its business in the ordinary course in terms of its customers, vendors, partners and employees. (File photo)

TOPEKA, Kan. (WIBW) -- Payless ShoeSource has filed Chapter 11 bankruptcy.

In a news release Tuesday, the company said it would continue to operate its business in the ordinary course in terms of its customers, vendors, partners and employees.

The Company has negotiated agreements with its lenders to provide Payless access of up to $385 million of debtor-in-possession financing, which includes access to $305 million of ABL financing and up to $80 million of new term loan financing.

The company said liquidity will ensure that suppliers and other business partners/vendors will be paid in a timely manner for authorized goods and services provided during the Chapter 11 process, in accordance with customary terms.

Payless says the $80 million of new term loan financing will also ensure the Company has the exit financing required to emerge from Chapter 11 well positioned for future growth and profitability post-restructuring.

Under the Chapter 11 plan, the company says it will strengthen its balance sheet and restructure Payless' debt load. Invest specific areas that Payless believes will provide sustainable growth including product and inventory initiatives and international expansion in Latin America.

At their Topeka headquarters, the company laid off 110 employees in January, and recently eliminated more than 20 IT positions.

Copyright 2017 WIBW. All rights reserved.

Powered by Frankly
KCTV 5 News

Online Public File:
KCTV  KSMO

Powered by WorldNow CNN
All content © 2017, KCTV; Kansas City, MO. (A Meredith Corporation Station) . All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.