(CANADA) – A wildly popular company Payless ShoeSource Canada Inc. has announced it will be filing for creditor protection in Canada and is scheduling the closure of all 2,500 stores in North America this spring.
Stephen Marotta, the company’s Chief Restructuring Officer said in a release that the closures are because the prior reorganization had the company “ill-equipped” for the modern retail environment. A large amount of debt and a large store footprint were also contributing.
Ontario Superior Court documents illustrate that the company recently had an oversupply of products and was cornered into selling them at deep discounts.
Payless says they will begin closing stores at the end of March with some stores remaining open until the end of May.
The company employees roughly 2380 employees in Canada and has 248 stores across the country. The company’s US stores are also scheduled to be closed down.
The company has failed to pay February’s rent in 220 out of the 248 stores across Canada and reported a loss of more than US$12 million last year alone.