The Payless Board of Directors authorized the company to seek court approval of up to $25 million in debtor-in-possession financing. WSFS Bank will act as administrative agent and collateral agent on the financing.
Great American Group, in a joint venture with Tiger Capital Group, will operate the store closing sales at all Payless ShoeSource locations in the United States and Puerto Rico.
Shoe retailer Payless voluntarily filed for relief under Chapter 11 of the Bankruptcy Code for the second time in 18 months. Ankura Consulting Group will serve as the company’s restructuring advisor through this additional bankruptcy process.
Reuters reported that discount shoe retailer Payless is working with restructuring attorneys to deal with approximately $665 million in debt.