Payless receives three-month exclusivity extension to negotiate plan

By Caroline Salls

Pittsburgh, June 26 – Payless ShoeSource obtained an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Missouri.

Specifically, Payless’s exclusive plan-filing period was extended through Sept. 4 from June 18 and the solicitation period through Nov. 4 from Aug. 17.

“The debtors have made significant progress toward concluding these cases in a value-maximizing manner, but still require additional time to resolve the complex outstanding issues in these cases,” the motion said.

As the wind-down of its North American brick-and-mortar retail operations nears completion, Payless said it has focused on developing a business plan to maximize the value of the remaining assets for the benefit of creditor constituencies.

According to the motion, the debtors’ liquidation sale process is scheduled to conclude on June 30, and they have been formulating a post-emergence business plan that will form the basis of a plan of reorganization.

In order to do this, Payless said it will need sufficient time to complete the store closing process and conduct negotiations with the various constituents involved in its cases.

Payless is a Topeka, Kan.-based specialty family footwear retailer. The company filed bankruptcy on Feb. 18 under Chapter 11 case number 19-40883.

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