
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: March 18, 2017
Partner
201-896-7095 jglucksman@sh-law.comRetailer Payless Shoesource is expected to file for bankruptcy in the near future, according to Bloomberg News. Although not yet publicly acknowledged, the company is rumored to be planning to close around 500 of its stores as a method of reorganization, according to unidentified sources. This would add Payless to the long list of retailers who have filed for protection in the last year – one that will likely keep growing due to the recent shift in shopping patterns and customer expectations.
In January, Reuters shared that Payless Inc. was exploring its options and working with debt-reconstruction attorneys to address a reported $665 million in debt – an amount that was collected due to less foot traffic in its stores. They’ve also dealt with the backlash of succeeding competitors, including show warehouse DSW Inc. and TJX Companies Inc., the parent company of retailer T.J. Maxx.
Payless Inc. understands the popularity of online shopping is on the rise. Last year, division senior vice president of store development at Payless Neil Hansen told Footwear News that the company is aware of the shift in shopping patterns and plans to take action to keep them out of the red.
“I recognize that we have to deliver omnichannel capabilities with a sense of urgency,” he said. “Almost every IT capital project underway at Payless relates to some sort of capability that the project will unlock for us.”
Payless Inc. plans to boost and maintain its online presence and develop a feature that allows users to shop for items online, but pick them up in the store. Not only does this ensure foot traffic throughout their locations, but it keeps shoppers happy: there’s no waiting for shoes to show up in the mail and zero shipping fees to pay.
“We’re not there yet,” he told Footwear News September 2016. “but we continue to grow handsomely with regard to [omnichannel], and it continues to be a major strategic initiative.
Retailers such as Macy’s, Sears and J.C. Penney are closing many of their locations, which may be a sign that department stores have passed their prime. Online shopping hasn’t taken over completely, however – brick-and-mortar stores like T.J. Maxx, Nike and Ulta are thriving for various reasons. They offer specialized service, ample bargain opportunities and “experiences that can’t be found on screen,” according to USA Today. Farla Efros, president of HRC Retail Advisory, told the source that department store retailers need to think outside of the box to succeed.
“People still want to feel, touch and look to make a decision,” she said. “It’s just the role of the store is different. It needs to be more experimental than it’s been.”
If Payless makes an effort to attract customers in a revolutionized way, they may be able to stay afloat as old-fashioned, by-the-book retailers continue to sink.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!