Collective Brands to Shutter 475 Stores

Collective Brands, Inc., owner of Payless ShoeSource and footwear brands Stride Rite and Keds, reported plans to close approximately 270 Payless ShoeSource and 75 Stride Rite stores that are low-volume and underperforming. The closures will take place during the next three years. The company reported a second-quarter loss of $35 million, including a one-time charge of $83.6 million based mostly on the declining value of its stores and Stride Rite’s trade name. A company spokesperson stated, “The actions will take be taken to optimize the profitability of markets by removing many low sales volume stores which are cash flow negative or slightly positive, but cannot support the assortments and staffing that the company believes its stores should offer.”