For those who grew up surrounded by places such as Blockbuster, Eckerd, and Kmart this alarming news may cause some sentimentality. Yes, the place where you bought your Disney Princess or Spider-Man shoes is seeking Chapter 11 bankruptcy protection. Several Utah locations are already closing and about 400 stores nationwide and in Puerto Rico. With Amazon and E-bay taking over, and the increasing amount of companies and people selling online, retailers are just a thing of the past.
Payless currently has over 4,400 stores in more than 30 countries. It’s one of the largest family footwear retailers in the nation and the latest big brand to struggle financially. But they are facing what many other retailers are also struggling with, and that is having too many stores when most people are shopping online. The company has been struggling for a while now. Employees on severance pay had to wait until the bankruptcy hearing to get paid. Many customers nationwide are unhappy with the news and have shown their support to local store managers and employees.
Less traffic in America’s Malls
Many of the once magic shopping malls are now looking like abandoned houses. According to statistics, about 15% of malls nationwide will be closed in the next ten years. This percentage is increasing every year. Retailers such like Macy’s, Staples, and JCPenney are planning on closing stores in 2017. Sears, now owning Kmart, may not be too long in business. Ralph Lauren will also be closing down Fifth Avenue and RadioShack has already filed their second bankruptcy.
Chapter 11 Bankruptcy
Chapter 11 is very convenient for large corporations going through difficult times. Some corporations may file for bankruptcy discreetly. This is why you don’t hear much about it in the news. Although a chapter 11 case generally comes to a close within 8 months to 2 years, there is no limit on the amount of time the case may require. According to reports, about 10% out of 15% of Chapter 11 cases are successfully reorganized.
There is no shame in seeking legal advice for your financial struggles. Many large corporations have done it. Why can’t you? This is an amazing opportunity for everyone to close this dark chapter in their lives and move on to a brighter future.
Hire a Salt Lake City bankruptcy attorney to guide you along the way. Selecting the right lawyer can make all the difference in the world. You should feel comfortable with the person you choose as many personal matters will be discussed. Call us today and schedule your initial consultation with Justin M. Myers. He is a solid advocate with many years of experience successfully handling bankruptcy cases.