Payless ShoeSource

**Payless** (formerly known as **Payless ShoeSource Inc.**) is an international discount footwear chain. Established in 1956 by cousins Louis and Shaol Pozez, Payless was a privately held company owned by Blum Capital, and Golden Gate Capital. In 1961, it became a public company as the **Volume Shoe Corporation** which merged with The May Department Stores Company in 1979. In the 1980s, Payless was widely known in the U.S. for its **Pro Wings** line of discount sneakers, which often had Velcro straps instead of laces. In 1996, Payless became an independent publicly held company. In 2004, Payless announced it would exit the **Parade** chain and would close 100 Payless Shoe outlets. On August 17, 2007, the company acquired the Stride Rite Corporation and changed its name to Collective Brands, Inc. The company had a total revenue for 2011 of US$ 3.4 billion. The company also had a stunt premium banner, **Palessi Shoes**.

In 2019, Payless was acquired by TRU Kids, and on August 18, 2020, Payless officially dropped 'ShoeSource' from its name, and launched its ecommerce website.

## History

### Acquisitions

Circa 1962–63, Volume Shoe company purchased the original Hill Brothers Shoe Company based in Kansas City, Missouri and converted all 25 of their stores to the "Payless" name. In 1971, Volume Shoe obtained the second Hill Brothers Shoe Store chain that was started in St. Louis, Mo in 1956 by Al Melnick and Sol Nathanson with the assistance and aid of the original Hill Brothers in Kansas City. The St. Louis version of "'Hill Brothers Self Service Shoe Store'" went from 3 to 103 stores in the Midwest and South between 1956 and 1971. Volume Shoe originally operated the 103 stores under the "Hill Brothers Self Service" name.

Starting in 1972, Volume Shoe began to consolidate stores in proximity and convert others to the "Payless" brand. The St. Louis operation of "'Hill Brothers Self Service'" stores were known for their bare bones minimalism and the slogan "two for five – man alive!", that is, women and children's shoes were two pair for five dollars.

Payless bought Picway Shoes from the Kobacker department store chain in 1994.

#### Key dates

* 1956: Pay-Less National is founded in Topeka, Kansas, by two cousins, Louis and Shaol Pozez, to open self-service stores selling budget footwear.

* 1962: The company goes public as Volume Distributors.

* 1967: The company is renamed Volume Shoe Corporation; an accelerated expansion program is launched.

* 1971: Volume Shoe Corp. acquires the St. Louis based Hill Brothers Self Service Shoe Store

* 1978: The Payless ShoeSource name is adopted for the bulk of the company's retail outlets.

* 1979: Volume Shoe is acquired by the May Department Stores Company.

* 1991: The company name is changed to Payless ShoeSource, Inc.

* 1996: May spins Payless off to shareholders, making it once again an independent, publicly traded firm.

* 1997: The mid-priced shoe chain Parade of Shoes is acquired from J. Baker, Inc.; the first Canadian Payless stores open.

* 1999: The firm launches e-commerce at payless.com; Payless opens locations on the sales floor inside Shopko discount stores, replacing J. Baker.

* 2000: Payless enters into a joint venture to expand into the Central American region.

* 2004: As part of a major restructuring, Payless announces that it will close down the Parade chain and close hundreds of Payless outlets.

* 2017: Payless ShoeSource filed for Chapter 11 bankruptcy and closed 673 stores nationwide.

* 2019: Payless was acquired by TRU Kids.

* 2020: Payless finishes the acquisition and plans to re-launch their U.S. e-commerce site.

* August 18, 2020: Payless announces relocation of company headquarters from Topeka, Kansas to Edgewater, Florida.

### Expansion

On June 27, 2006, Payless announced that it was launching a new logo created to represent a more stylish, upscale and contemporary company. This is the first rollout of stores in 2012 and beyond.

* Canada: At the end of 2018, Payless had 248 stores in Canada, however, it was announced in February 2019 that all of the stores would be closed.

* Eastern Caribbean: In 2014, Payless opened its first store in St. Lucia at the Baywalk Mall in Gros-Islet. This is one of two Payless stores located on the island of St. Lucia. Antigua, Grenada, St. Kitts, Dominica and St. Vincent all have one store each.

* Australia: In 2013, Payless ShoesSource bought Payless Shoes Australia's full 150 stores, which has operated since 1980 out of administration. Previously, these two companies did not have any affiliation.

* Trinidad and Tobago: Payless has a total of 22 stores across Trinidad and Tobago, having first opened its doors in 2001.

* Barbados: In 2012, Payless expanded into the Barbados market by opening the first ten-employee store at Haggatt Hall, St. Michael. The group's CEO announced four more are also planned to open, and this will increase its local operations to 50 employees.

* Jamaica: Payless opened in Jamaica in January 2011, and today has a total of 15 stores on the island.

* Philippines: As of March 2019, Payless has 76 stores in the Philippines.

* Indonesia, Singapore, and Malaysia: In April 2011, Payless launched its first store in Jakarta, Indonesia followed by one store in Kuala Lumpur and Singapore within the same year and under the same management. Payless operates 19 stores throughout Indonesia currently.

* Thailand: The Central Marketing Group (CMG), a business unit of the Central Group, has signed a franchise agreement with Kansas-based Payless that will see outlets next year in Bangkok – Chonburi, making Thailand its 15th franchise country. It will also adopt Payless's new Hot Zone format and purchase products directly from the seasonal assortments, with slight adjustments for local needs.

* United Arab Emirates: It belongs to AlShaya group in the UAE. It has opened different branches in Dubai Mall, Mirdif City Center and Sahara Center, and also in Bawadi Mall in Al-Ain City.

## Collective Licensing International, LLC

Payless, operating as Collective Brands, Inc. formed a division called Collective Licensing International, LLC (CLI) in January 2004, which was based in Englewood, Colorado. CLI held and owned various clothing and sport brands, particularly "youth lifestyle brands" and board-sport brands such as Airwalk, Vision Street Wear, Sims, Lamar and LTD, World Snowboarding Championships, Sugarboards, Carve, genetic, Dukes, Rage, Ultra-Wheels, Hind, Spot Bilt and Skate Attack. The primary purpose of the division was to develop brands and provide them with marketing and branding guidance in various markets.

In 2010, CLI acquired Above The Rim from Reebok International for an undisclosed amount.