It has been a tumultuous lead-up, but Payless ShoeSource has finally made its way to bankruptcy court. The Topeka, Kan.-based mega family-footwear retailer filed for Chapter 11 protection in St. Louis on Tuesday, listing the value of its assets at between $500 million and $1 billion and its liabilities at between $1 billion and $10 billion.
The debt-saddled firm said it would immediately close nearly 400 of its 4,400 stores as it attempts to restructure.
In the mean time, Payless — which has included its North American entities, as well as two Hong Kong-based entities involved in logistics (CBL) and supply chain (DAL) in its restructuring plan — has a hefty list of unsecured creditors that are owed large sums.
Factories in Taiwan, Hong Kong and parts of China make up the majority of the list of Payless creditors with the largest unsecured claims while, U.S.-based Fila USA Inc. has the eleventh largest unsecured debt. (A list of creditors holding the 50 largest unsecured claims must be filed in Chapter 11 cases.)
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Here, 11 firms owed big bucks by bankrupt Payless.
1. MORGAN STANLEY SENIOR FUNDING INC.
Location: New York, N.Y.
Owed: $145 million
2. EVER-RITE INTERNATIONAL CO. LTD.
Location: Taiwan
Owed: $23.3 million
3. HUGE INTERNATIONAL LTD.
Location: Taiwan
Owed: $18.2 million
4. MODA SHOE LTD.
Location: El Segundo, Calif.
Owed: $14.9 million
5. THE ASEAN CORP. LTD.
Location: Long Island City, N.Y.
Owed: $13.9 million
6. QINGDAO DOUBLESTAR MINGREN IMPORT & EXPORT CO.
Location: China
Owed: $8.7 million
7. FORTUNE WAY INTERNATIONAL CO. LTD.
Location: Taiwan
Owed: $7.9 million
8. XIAMEN C & D LIGHT INDUSTRY CO. LTD.
Location: China
Owed: $5.6 million
9. SANTAK CORP.
Location: Taiwan
Owed: $5.6 million
10. HIGHCOM INTERNATIONAL LTD
Location: Taiwan
Owed: $5.5 million
11. FILA USA INC.
Location: New York, N.Y.
Owed: $5.2 million
* Footwear News reported in early March that Payless would likely file Chapter 11 in April.
For more on FN’s coverage of Payless’ financial challenges, click on the links below:
FN Exclusive: Payless to Close Stores
Is Payless the Next Sports Authority?
Payless’ Financial Struggles Could Send Multiple China-Based Factories Into Bankruptcy
