Payless ShoeSource stores across Canada and the U.S. – including two locations in St. Albert – will be permanently closing this spring.
In a press release, the company said its 248 Canadian stores would start closing end of March, with the remainder shutting down in May. In total, 2,500 stores across North America will close.
An employee at one of St. Albert's Payless stores said they found out about the closures while watching the news. The next day, they received an email from corporate at Payless.
The employee’s name and gender are being kept confidential, as they’re unsure how long their employment will last for and what they may receive for compensation.
The employee said they haven’t been told how long the store will remain open.
They did say the store has seen an increase in sales since the company announced the closures, with $1,500 in sales Wednesday as opposed to normal sales of $200 to $300 per day.
This past week, the store also didn’t receive shipments on Monday or Wednesday, something the employee said hasn’t happened in the years they’ve worked there.
“Last week, they said, ‘Oh no, you got lots of stock, you don't need any,' ” they said.
Lauren Jeffords, senior director of corporate communications at Payless ShoeSource, said she couldn’t comment on how many employees in St. Albert would be impacted by the closures.
She also couldn’t comment on whether employees would recieve compensation or severance packages.
Jillian Creech, manager of St. Albert Centre, said in an email she was sad to see the store close.
“Our minds are with the staff whom we are optimistic will secure new positions within our ever-expanding retail family. Payless occupies a fantastic location within the new wing of St. Albert Centre which we will work diligently to backfill as soon as possible,” she stated.
Some residents aren't looking forward to the impact of the stores' closures, viewing it as a loss of cost-friendly footwear.
Giovanni DeMaglio said he would have to find a new solution when it comes to cheap and effective footwear. His 14-year-old son has been wearing a pair of $8 winter boots all season.
“They're warm, they're lasting him, he doesn't complain,” DeMaglio said.
Now the store is closing, he’ll most likely have to buy more expensive shoes for both himself and his son.
The company stated it had filed for bankruptcy protection in the U.S. in 2017, and again in Canada and the U.S. on Feb. 18.
Documents filed with the Supreme Court of Ontario, first obtained by The Canadian Press, said around 2,400 employees across the country will be impacted.
According to the documents, the company failed to pay rent in February across 220 Canadian locations. The company also reported it had lost more than $12 million in U.S. dollars last year in operating costs.
