One of America's largest retail shoe chains, Payless ShoeSource, went bankrupt. And Ralf Lauren closed the flagship store of Polo Ralf Lauren on Fifth Avenue in New York.
Retail Payless ShoeSource has about 4,5 thousand shoe stores for the whole family; retail is present in 30 countries around the world. The company filed a bankruptcy lawsuit because of the inability to service its loan debt. The retailer plans to conduct business restructuring and the immediate closure of 400 stores with low profitability in the United States and Puerto Rico.
In addition, premium clothing and accessories brand Ralf Lauren yesterday announced the closure of its flagship store, Polo Ralf Lauren, located in New York on Fifth Avenue. As part of optimizing the business, the company also plans to reduce staff and move its digital platform to a less expensive system. It is expected that these steps will save about $ 140 million. But the company will have to spend about $ 370 million to pay severance pay to laid-off employees and the commission for terminating the lease.
American traditional retail is going through difficult times. The main challenges for retailers today are high rental rates, an increase in hourly wages and other costs, and increased competition from online stores.
Among the retailers who filed for bankruptcy last year, in accordance with article 11 of the Bankruptcy Act in the United States, which implies a restructuring of the business due to the inability to service credit debt, Wet Seal, BCBG, American Apparel, Pacific Sunwear of California (PacSun) and Aéropostale Inc.