HOUSTON – Payless is back. The shoe retailer, which has formally dropped the name “Shoesource” from its brand name, announced in a press release Tuesday that it is opening new online retail options and new brick-and-mortar locations.

Effective August 11, 2023, retail sales in North America on Payless.com are no longer available. Please note that all orders made on or after June 6, 2023, are final and non-returnable. We thank you for your patience as we continue to work diligently on the future of Payless.com.

As in any corporate failure, there is no one cause. Over seven years, Payless went through a wringer of private equity and hedge fund stewardship that left it with inadequate technology, run-down stores and no financial cushion to survive an era of upheaval in retail.

2019: Payless filed for a second bankruptcy and closed all their remaining stores in the United States and Canada, which was also coincidental with Shopko's own bankruptcy and liquidation. 2020: Payless emerges from bankruptcy and plans to re-launch a U.S. e-commerce site.

Payless has relaunched, with a slightly different name. The budget shoe store closed more than 2,000 stores in North America last year after filing for its second bankruptcy. Good news, shoe lovers!

2019 bankruptcy and revival in 2020 On February 14, 2019, Payless filed for bankruptcy again for a second time and this time they closed all 2,100 stores in the United States by May 2019.

Payless ShoeSource main competitors are Zappos.com, Abercrombie & Fitch Co, and Steve Madden. Competitor Summary.

But it also faced profound challenges. Many malls and shopping centers were entering a death spiral, with falling foot traffic, store closings and underinvestment. People were increasingly buying shoes online, along with most everything else. Payless had underinvested in its information technology infrastructure.

The company exited the American market when it closed the last of its 2,000-plus stores in June 2019. While the chain, which was founded in 1956, hoped to once again have a footprint in the United States, its business remained alive in international markets. Payless currently has more than 700 international stores.

adidas claimed Payless' lower-cost athletic shoes could dilute its famous logo in the minds of consumers and tarnish its brand by association with a lower-quality product. In 2008, the jury found in favor of adidas, awarding $305 million, believed to be the largest verdict in a trademark case.

After filing for bankruptcy protection for the second time and shutting all of its 2,100 stores in the US last year, discount shoe chain Payless is attempting a comeback. The retailer said it's planning to open 300 to 400 standalone stores nationwide in the next three to five years.

adidas adidas claimed Payless' lower-cost athletic shoes could dilute its famous logo in the minds of consumers and tarnish its brand by association with a lower-quality product. In 2008, the jury found in favor of adidas, awarding $305 million, believed to be the largest verdict in a trademark case.