TOPEKA, Kan., April 5, 2017 /PRNewswire/ -- Payless ShoeSource ("Payless", "the Company"), the largest specialty family footwear retailer in the Western Hemisphere, today announced that first-day motions to help facilitate continued operations in the ordinary course of business while the Company operates under Chapter 11 protection were approved by Judge Kathy A. Surratt-States of the U.S. Bankruptcy Court for the Eastern District of Missouri.
As part of the Court's approval of first day motions, Payless received authorization on an interim basis from the Court to provide employee wages, healthcare coverage, and other benefits without interruption, and pay certain vendors and suppliers for all authorized goods and services. All vendors and suppliers will be paid in the ordinary course for those goods and services provided on or after the date of the Chapter 11 filing.
The Court's approvals also affirmed on an interim basis access to $245 million of the $305 million Debtor-in-Possession (DIP) financing facility provided by a lender group led by Wells Fargo.
As a result of today's hearing, all Payless stores and Payless.com will be able to continue offering without interruption the wide range of affordably priced family footwear for which they are relied on by families across America.
Related to these activities, Payless has retained Kirkland & Ellis as its legal advisor, Guggenheim Securities as its investment banker and financial advisor and Alvarez & Marsal as its restructuring advisor.
Additional information on the process can be found at www.paylessrestucture.com. Information about the claims process will be available at https://cases.primeclerk.com/payless. The company also has established a call center for questions: 844-648-5574 if calling from within the U.S. or Canada, or +1 347-505-5254 if calling from outside the U.S. or Canada. The court case number is 17-42267.
Payless ShoeSource is the largest specialty family footwear retailer in the Western Hemisphere, offering a wide range of fashionable shoes and accessory items at affordable prices for every member of the family. The company's mission is simple: Become the Go To, Get More, Payless shoe store for our customers. Payless has approximately 4,400 stores in more than 30 countries and was founded in 1956 in Topeka, Kan. where its global headquarters remains today.
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This document contains certain forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "believe," "continue," "intend," "plan," "path," "emerge," "conviction," "future," "growth," "ensure," "commit," "should," "will," or "would" or the negative thereof or other variations thereof or other comparable terminology and include, but are not limited to, statements regarding the effect of the Chapter 11 proceeding on creditors, customers, vendors, suppliers, associates, business partners and other stakeholders, the amount and uses of financing expected to be secured, and any and all matters relating to the Company's emergence, if any, from Chapter 11 and the Company's financial results and business performance thereafter. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. Such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. In light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this document may not in fact occur. The Company disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law.
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SOURCE Payless ShoeSource