Certain Payless Canadian subsidiaries (“Payless Canada”) will also be seeking protection pursuant to the Companies’ Creditors Arrangement Act (“CCAA”) in the Ontario Superior Court of Justice (Commercial List).
In a press release announcing the filing, Payless noted that “Payless intends to use these proceedings to facilitate a wind-down of its approximately 2,500 store locations in North America and its e-commerce operations. The Company expects that Payless store closings will begin at the end of March and many stores will remain open through the end of May, as it conducts liquidation sales in the U.S. and Canada. Payless has also wound down its e-commerce operations.
Events Leading to the Chapter 11 Filing
On August 10, 2017, Payless emerged from its earlier bankruptcy having (i) eliminated approximately $435mn in funded debt, (ii) closed approximately 675 underperforming brick and mortar stores and (iii) achieved approximately $50mn in annual expenditure savings through landlord concessions and modification of existing leases.
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