American Payless drags Chinese suppliers into the abyss

Payless Shoe recently made trade headlines for some statements coming from China, where it has its principal manufacturing sites. Some of their suppliers are close to bankruptcy for missed payments by the company headquarter in Arkansas. Some arrears payments date back to August. A commercial agent (whose name is kept confidential) has issued to Footwear News interview in which reports that several Chinese companies, of which Payless is the largest customer, have also had to make redundancies. The agent explained that “Payless does not hide financial difficulties, but also warns that in case of suspension of deliveries would be forced to close the relationship with suppliers. They continue shipments in hopes of receiving arrears “. Payless is considering the receivership (Chapter 11) because of the debt of 665 million and is studying the closure of an indefinite number (between 350 and 500) of its 4,400 stores.

PREMIUM CONTENT

Choose one of our subscription plans

Do you want to receive our newsletter?
Subscribe now
×
Sei un nuovo utente? Abbonati/Registrati