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Is Payless ShoeSource Private Equity Owned?
🟡 FORMERLY PE OWNED
Payless ShoeSource
Includes Payless, Payless Shoes
footwear · Topeka, KS
PE Firm
Golden Gate Capital
Year Acquired
2012
“PE extracted $350 million in dividends in two years, then presided over the largest store liquidation by count in U.S. history.”
What Happened
- •Golden Gate Capital and Blum Capital bought Payless in 2012 for $1.3 billion, with roughly $2 billion in total debt loaded onto the deal
- •Within two years, the PE owners extracted over $350 million — borrowing money in Payless's name and paying it straight to themselves
- •First bankruptcy in 2017 closed roughly 400 stores; second bankruptcy in 2019 liquidated all remaining 2,300+ U.S. locations
- •The 2019 liquidation was the largest by store count in U.S. retail history — aggrieved creditors alleged the PE dividend extraction drove the company into insolvency
The Damage Done
- ▸All 2,300+ U.S. stores liquidated in 2019 — the largest retail liquidation by store count in American history
- ▸Budget-conscious shoe shoppers lost a go-to option, with no direct replacement at the same price point in most malls and shopping centers
- ▸Thousands of retail workers lost their jobs across two rounds of bankruptcy in under two years
- ▸Communities, especially in lower-income areas, lost an affordable footwear retailer while PE owners walked away with hundreds of millions in extracted dividends
Sources
Also owned by Golden Gate Capital
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Frequently Asked Questions
Is Payless ShoeSource owned by private equity?
Not anymore. Payless ShoeSource was formerly owned by Golden Gate Capital starting in 2012, but the firm has since exited. The effects of PE ownership often linger.
What happened to Payless ShoeSource after the acquisition?
All 2,300+ U.S. stores liquidated in 2019 — the largest retail liquidation by store count in American history Budget-conscious shoe shoppers lost a go-to option, with no direct replacement at the same price point in most malls and shopping centers
Who owns Payless ShoeSource?
Payless ShoeSource is owned by Golden Gate Capital, which acquired it in 2012.