Payless Shoes sold to global shoe retailerDOWNLOAD
15 March 2013: A global shoe retailer has purchased the business and assets, as a going concern of Payless Shoes Pty Ltd (Administrators Appointed).
Payless Shoes was Australia’s largest independent shoe retailer, which after being successfully restructured now operates a 150-store network across NSW, Victoria, Queensland, South Australia, Western Australia and the ACT.
The sale, which was completed earlier today, was achieved by Deloitte Restructuring Services Partners Vaughan Strawbridge and David Lombe, who were appointed Voluntary Administrators of Payless Shoes on 21 September 2012. Terms of the sale were not disclosed.
The purchaser is United States based Payless ShoeSource, a leader in the global footwear market. Payless ShoeSource operates approximately 4,400 shoe stores in more than 30 countries throughout the world, including United States, Canada and Latin America.
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.
Effective today, Payless ShoeSource is 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.
Mr Strawbridge said 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.
He said Payless Shoes was now positioned to be a profitable and sustainable business with strong operations and people, and today’s announcement represents a great outcome for the organisation.
“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.”
Mr Lombe lead Partner, Deloitte Restructuring in NSW said that in the current retail environment the outcome for Payless Shoes was outstanding for the company and its employees.
The sale follows two other business sales achieved by Deloitte Restructuring Services Partners in their capacity as Voluntary Administrators:
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