Payless receives court approval of bankruptcy relief efforts
Currently in the midst of its bankruptcy proceedings, Payless has announced that the U.S. Bankruptcy Court for the Eastern District of Missouri has approved the company’s first day motions, providing support as the retailer shuts down approximately 2,500 stores in the U.S., Puerto Rico and Canada, as well as its e-commerce operations.
According to a press statement, Payless, which filed for its second bankruptcy earlier this week, will now receive relief for the continued payment of employee wages, maintenance of employee benefits and payment of claims of critical vendors. In addition, the court also approved procedures and policies for U.S. store closing sales, and ruled to continue to honor gift cards and store credit until March 11 of this year.
Payless’ retail operations outside of North America, including its stores in Latin America, are separate legal entities that are not included in the current filings.
The company said that its 420 stores across 20 countries in Latin America, its stores in the U.S. Virgin Islands, Guam and Saipan, and its 370 international franchisee stores in 16 countries across the Middle East, India, Indonesia, Indochina, Philippines and Africa, will continue operating normally.
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