Days after filing for Chapter 11 bankruptcy protection and announcing it’s liquidating all operations in North America by May, Payless ShoeSource said on Wednesday, it will still honor gift cards and store credits for the next two weeks.
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The embattled Topeka, Kansas-based company said customers will have until March 11 to use their credits and it will allow returns and exchanges of non-final sales items through the end of the month for goods bought before Feb. 17.
The Associated Press was first to report the news.
Additionally, Payless said Wednesday that it has received court approval to start liquidating its 2,500 stores in the U.S., Puerto Rico and Canada as well as its e-commerce business. It also got the green light to continue to pay employee wages and benefits and pending claims from critical vendors.
In a statement to FOX Business last Friday, the discount retailer said it expects all stores to “remain open until at least the end of March and the majority will remain open until May.”
“This process does not affect the Company’s franchise operations or its Latin American stores, which remain open for business as usual,” Payless added.
The chain first filed for bankruptcy protection in April 2017, which prompted it to close hundreds of stores as part of its reorganization plan.
"Payless has now joined Sears, Kmart, Gymboree, Toys ‘R’ Us and several other giant retail chains who simply could not keep up in an era where online shopping has become king," Ali Craig, brand strategist and host of "Fix My Brand," told FOX Business. "It’s a devastating loss to the industry because the store was created in 1956 in an effort to make footwear more affordable. "
The Associated Press contributed to this report.