It's time to check your gift card stash once again. Discount shoe store Payless ShoeSource has just announced that they are filing bankruptcy and will be closing all 2,500 U.S. stores. According to CNBC, the company has approximately $470 million in debt.
All stores are currently expected to remain open until the end of March, with the majority of stores keeping their doors open until May. Liquidation sales began this past weekend and will continue through May. They will also be winding down their online site, Payless.com, who has already stopped taking new orders as of February 15.
A statement from the company says they will ask a federal judge permission to honor all gift cards until March 11. However, until this request is approved by the court, the last day to use up gift cards or make returns and exchanges will be March 1. Store coupons and discounts will no longer be valid.
Sadly, Payless is just one of the latest retail chains to file for bankruptcy. Gymboree and Toys R Us also recently shuttered their doors and with everyone One-Click ordering on Amazon these days, we can surely expect more brick-and-mortar stores to meet the same fate.
Payless’s chief restructuring officer Stephen Marotta told CNBC in a statement, "The challenges facing retailers today are well documented, and unfortunately Payless emerged from its prior reorganization ill-equipped to survive in today’s retail environment."
So, if you've got some future kids shoes to stock up on, it's time to run, not walk.