Local discount footwear chain Payless Shoes has been salvaged from administration by a global shoe retailer who has purchased the business.
Payless Shoes, which operated over 230 stores nationally with approximately 1,400 employees, went into voluntary administration on September 21.
However, administrators David Lombe and Vaughan Strawbridge from Deloitte Restructuring Services, have now confirmed the sale of the business and assets to US-based company Payless ShoeSource.
Payless ShoeSource currently operates approximately 4,400 shoe stores in more than 30 countries throughout the world, and will now inherit the Payless Shoes 150-store network, following its successful restructure.
The Payless Shoes stores are located in several cities across New South Wales, Victoria, Queensland, South Australia, Western Australia and the Australian Capital Territory.
Terms of the sale, which was completed last week, were not disclosed.
Commenting on the successful outcome, administrators said Payless Shoes was not previously affiliated with Payless ShoeSource, however the business was modeled after Payless ShoeSource stores in the U.S. including a similar store format, target customer and focus on value.
Payless ShoeSource is now in control of and running the business under the Payless Shoes brand and as part of the Payless ShoeSource global organisation.
Payless ShoeSource is also offering positions on the same terms and conditions to approximately 850 employees across the head office and store operations.
Strawbridge added that the sale demonstrated that, with effective restructuring, retail businesses could be turned around and jobs could be retained.
“In the space of six months, Payless Shoes has been turned from an operation facing financial distress into a profitable business that has attracted a global buyer,” he said.
“This process has seen the retention of 150 stores and, with that, ongoing jobs for around 850 people as the survival of the brand and continuity for many suppliers and landlords.
“Achieving this sale is a significant outcome, and one which has been made possible by the hard work of many people and the understanding and support of employees, suppliers and landlords.”
Deloitte Restructuring NSW lead partner Lombe agreed that the outcome for Payless Shoes was outstanding for the company and its employees given the current retail environment.