PARSIPPANY — Payless the largest specialty family footwear retailer in the Western Hemisphere, announced in April that it filed motions to help facilitate continued operations in the ordinary course of business while the Company operates under Chapter 11 protection were approved by Judge Kathy A. Surratt-States of the U.S. Bankruptcy Court for the Eastern District of Missouri.
As part of the Court’s approval of first day motions, Payless received authorization on an interim basis from the Court to provide employee wages, healthcare coverage, and other benefits without interruption, and pay certain vendors and suppliers for all authorized goods and services. All vendors and suppliers will be paid in the ordinary course for those goods and services provided on or after the date of the Chapter 11 filing.
The Court’s approvals also affirmed on an interim basis access to $245 million of the $305 million Debtor-in-Possession (DIP) financing facility provided by a lender group led by Wells Fargo.
As a result of the hearing, all Payless stores and Payless.com were able to continue offering without interruption the wide range of affordably priced family footwear for which they are relied on by families across America.
Payless is seeking to close the 3085 Route 46, in the Morris Hills Shopping Center.
Payless has asked a federal bankruptcy court for permission to close 112 stores, including the Route 46 location, and potentially another 296 if conditions don’t improve.
Click here for a complete listing of current stores under negotiation to close.
According to the company’s website “Closure is not a certainty yet, and a final decision depends on bankruptcy negotiations. “We remain hopeful that these negotiations will be successful and provide us with the ability to avoid additional closures.” A court hearing on the potential closures is set for June 8.
