Payless Shoesource emerges from bankruptcy court protection
Department stores continue to struggle as more and more people move to online shopping. With that, and other business news, here’s our James Munoz.
Macy’s cut jobs and closed some locations in an attempt to reverse falling sales. The department store saw its sales fall 2.8 % at established stores, its tenth decline in a row – but that was better than the 3.3 % analysts expected. Shares in department stores fell in Thursday’s trading – Macy’s was down 4 %, Kohl’s was off nearly 9 % and Dillard’s shares declined 15 % after reporting a $17.1 million loss.
It’s not just department stores struggling in today’s retail environment. Payless Shoesource has emerged from bankruptcy court protection after shedding more than $435 million in debt and closing about 673 stores. This gives the chain a cleaned-up balance sheet as it looks to compete in a retail sector that is increasingly facing bankruptcies, stores closings and a huge increase in e-commerce competition. The company plans a strategy that largely relies on brick-and-mortar stores. But Payless also has an online store and plans to expand operations in china through franchising agreements.