Bankruptcy can be emerged from
Posted by Ronald I. Chorches Thursday, August 24th, 2017 | 158 views
Many Hartford, Connecticut, businesses are prospering. However, for others, business & commercial bankruptcy options are something worth discussing with an experienced attorney. Bankruptcy is something that has affected businesses nationwide, including in the retail sector.
Payless ShoeSource is an example of a retail company that went into bankruptcy but is now set to emerge from it. They are one of the biggest retail chains to do that successfully, which makes reading about them valuable for other businesses considering filing for bankruptcy. Payless’ plan, despite the fact that many retail companies are focused on e-commerce, is to focus on brick-and-mortar sales instead. They are banking on the belief that people still want to visit physical stores in person, especially for things like shoes, which often require trying on multiple pairs and getting direct help from salespeople.
Payless, emerging now from bankruptcy, does so after successfully disposing of half the $847 million in debt that it had built up over the years. Now, the company is planning to open stores throughout Latin America, and to develop franchises in Asia as well. These plans reflect an optimistic outlook about the future of the company, which is based on a belief that it can expand in North America and abroad.
Payless’ new opportunities for success come amid record closings of brick-and-mortar stores, and bankruptcies that have included HHGregg, The Limited, Gymboree and RadioShack. Meanwhile, some e-commerce companies are buying businesses with physical outlets, such as is the case with Amazon.com’s plan to purchase Whole Foods Market Inc.
During their bankruptcy, Payless closed about 700 stores, most of which were based in malls. Depending on the arrangement, leasing space in malls can be very expensive, which may be why Payless chose to close those stores. However, that still leaves the company with 3,200 post-bankruptcy locations. It will also be opening four mega stores, and will invest $234 million across the next five years to improve its inventory system.