A&G Realty to Sell 2,587 Payless Store Leases
Following the shoe store company’s bankruptcy filing and decision to close all of its North American locations, the real estate advisory firm will manage a series of auctions.
NEW YORK CITY—A&G Realty Partners will manage the sale of the 2,587 Payless ShoeSource store leases including all locations in Canada and the US. The stores range from 500 square feet to 10,000 square feet, with an average size of 3,000 square feet. The available leases include 255 locations in California, 192 in Texas, 170 in Florida and 157 in New York.
“With locations available in all 50 states, the District of Columbia, Puerto Rico, and all 10 Canadian provinces, the Payless leases offer incredible market penetration opportunities for food, fashion, or service brands looking to enter new regions,” says A&G co-president Emilio Amendola. “The diversity of the Payless leases—with urban, suburban strip center, freestanding highway and mall stores—creates a wide range of possibilities for expanding chains seeking affordable rents in prime locations. We expect a strong response from national, regional and local tenants.”
Store closings are expected to begin in March and to conclude in May. The leases will be sold in a series of auctions, whose dates and locations have not yet been determined.
Payless announced its voluntary Chapter 11 filing in a Missouri bankruptcy court on February 18, 2019. As reported in GlobeSt.com, the discount shoe store giant is closing all of its North American stores. Its 420 stores in Latin America, retailers in the US Virgin Islands, Guam and Saipan, and 370 international franchise stores in the Middle East, India, Indonesia, Indochina, the Philippines and Africa will continue operations.
The company previously filed for bankruptcy in April 2017, shuttering more than 700 stores eliminating $435 million in debt according to CNBC.
Steve Marotta was appointed chief restructuring officer of Payless. In addition to A&G advising as real estate consultants, Akin Gump Strauss Hauer & Feld and Armstrong Teasdale are the company’s legal counsel. Brock & Blackwell is providing legal representation for Payless Canada.
A&G has been retained due to its specialization in real estate bankruptcy dispositions, lease restructurings, valuations and acquisitions. They have handled the sales of the owned and leased retail real estate of Toys “R” Us, the Bon-Ton Stores, Sports Authority, Office Depot, CVS and Radio Shack.