(Reuters) – U.S. discount retailer Payless ShoeSource Inc has hired an adviser to help evaluate strategic alternatives, including a sale or restructuring, less than 18 months after it emerged from bankruptcy, people familiar with the matter said on Tuesday.
The action underscores the efforts Payless is making to avoid a second bankruptcy, as the popularity of online shopping on websites such as Amazon.com Inc continues to challenge the viability of many brick-and-mortar retailers.
Payless - Investment - Bank - PJ - Solomon
Payless has hired investment bank PJ Solomon, the sources said. The chain, a fixture in malls and strip malls known for its shoes costing less than $30, is also considering shuttering at least one-third of its approximately 3,000 stores, one of the sources added.
The retailer may also consider filing for bankruptcy, the sources said, cautioning that no decisions on the company’s future have been made. Payless exited bankruptcy in 2017 with about $400 million in loans, after slashing its debt pile from over $800 million, according to court papers.
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