Subjects: PER, RCN, BCY
Payless ShoeSource Successfully Completes Financial Restructuring and Emerges from Chapter 11
TOPEKA, Kan., Aug. 10, 2017 /PRNewswire/ -- Payless ShoeSource ("Payless," "the Company") today announced that it has successfully emerged from its Chapter 11 restructuring as the number one specialty footwear retailer in the U.S. and one of the largest in the world with about 3,500 brick and mortar stores, one of the best-recognized global brands, and with substantial liquidity after eliminating in excess of $435 million in funded debt.
Following the completion of the Company's restructuring, Paul Jones will retire as Chief Executive Officer. The post-emergence Board of Directors will begin a search to identify a new Chief Executive Officer to lead Payless forward.
In the interim, Payless will be led by a newly appointed Executive Committee comprised of Payless' Chief Financial Officer, Michael Schwindle, Payless' Chief Operating Officer, Mike Vitelli, and headed by Martin R. Wade, III, Chairman of Payless' post-emergence Board of Directors and interim Chief Executive Officer.
"We have accomplished our goals of strengthening our balance sheet and restructuring our debt load, positioning Payless to create substantial value for our stakeholders and achieve long-term success," said Paul Jones. "In a year where so many major retail companies have filed for Chapter 11 restructurings, Payless is the first to successfully emerge as a stronger and healthier enterprise for the benefit of its customers, employees, suppliers, business partners, and lenders. That is a testament to the hard work and dedication of everyone at Payless, and I thank them for the honor of having worked with them over these past five years. Our new owners believe wholeheartedly in the future of Payless, and I am confident that they will identify a new leader who will complement our outstanding and deeply committed management team, while sparking new ideas and approaches," Jones continued.
"Payless remains poised to execute on the Company's go forward strategy, and is excited to continue to serve our loyal customers in North America and around the globe," said Michael Schwindle, who will be a member of the newly appointed Executive Committee. "On behalf of everyone at the Company, I want to extend our collective thanks to Paul. We are grateful for his exemplary leadership and his contributions to the Company's strategic direction, which have helped build a strong foundation for future growth," Schwindle concluded.
During the process, Kirkland & Ellis LLP served as legal advisor to Payless, Guggenheim Securities, LLC as its investment banker and financial advisor, and Alvarez & Marsal North America, LLC as Chief Restructuring Officer. Working with the management team, these advisors have ensured that the Company entered and exited Chapter 11 in just over four months, an accelerated pace which has given the Company the best chance for success going forward.
About Payless
Payless ShoeSource is the number one specialty footwear retailer in the U.S. and one of the largest in the world, offering a wide range of shoes and accessory items at affordable prices for every member of the family. The company's mission is simple: Become the Go To, Get More, Pay Less shoe store for our customers.
Payless' seasonal collection includes shoes for almost every need like dress, casual, and athletic styles as well as specialty footwear such as dance shoes, sport cleats, water socks, and slip-resistant footwear. Payless stores feature hard-to-find sizes for women with a significant portion of the seasonal assortment offered in sizes 11, 12, and 13, and wide widths. The children's line also includes a range of styles in wide widths, as well as half-sizes and extended sizes up to youth size 6 (equivalent to women's size 8 and men's size 6). Payless also carries an array of seasonal accessories such as socks, handbags, scarves, hats, jewelry, and hair items to help everyone complete their looks.
Brands are always important to shoppers and Payless has a strong portfolio featuring popular and authentic athletic brand Champion®, American Eagletm by Payless®, designer label Christian Siriano for Payless, heritage skate brand Airwalk®, KangaROOS®, American classic Dexter®, and the youthful edgy fashion brand, Brashtm. The children's collection features one of the broadest and most powerful assortments in the marketplace, including a range of fun character shoes kids love to wear.
Payless serves millions of consumers through its powerful global network of stores in all 50 U.S. states, as well as Puerto Rico, Guam, Saipan, the U.S. Virgin Islands, Canada, Central America, the Caribbean, and South America. The company also has an expanding presence in the Eastern Hemisphere through franchising arrangements. Payless operates an online store and has about 3,500 brick-and-mortar stores in more than 30 countries.
Payless was founded in 1956, in Topeka, Kan. on a revolutionary idea ? selling quality shoes at affordable prices in a self-select environment. Sixty years later, Payless continues the self-select model combined with leading customer service to provide a fun and engaging shopping experience for its customers.
Contacts
Meghan Spreer
785-295-6004
Cristi Allen
785-559-5503
SOURCE Payless ShoeSource
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