Expect Less from Payless
Remember when Payless ShoeSource said they were going to close 1,000 of their 4,000 locations? As it turns out, that number might be around the 400 to 500 store range instead. According to Bloomberg, the company is pretty much ready to file for bankruptcy. This will force them to close hundreds of stores and leave some of the countries where they operate. The company’s sales are down (as are all clothing retailers) and they have hundreds of millions in debt. Filing for chapter 11 would only help manage this debt, as would a structural reorganization of the company. So if there’s a Payless at a mall near you, there’s a decent chance it might not be there later this year.
Sears: “We’re doing fine, y’all.”
Earlier this week, Sears scared a lot of shareholders by expressing doubt in the future of their company. Now, the company’s CFO is telling everyone that things are just find (kind of). “Sears Holdings remains focused on executing our transformation plan and will continue to take actions to help ensure our competitiveness and ability to continue to meet our financial obligations,” according to Jason Hollar, the company’s CFO. He then stated that while the company’s debt, lack of sales, and other money-losing factors are indeed risks, the company’s famous turnaround plan could negate them. Still, investors are not happy, and $SHLD is down 1% this morning before the markets open.
Meatless Burger Production Passes Major Hurdle
Impossible foods, the fake meat company that allegedly makes a really tasty not-burger, claims they can make 1 million pounds of their product a month. The company does not use any animal product to create their meat, and though vegetarians/vegans are excited about the prospect of eating something that tastes like meat, the company is trying to go after meat eaters first. The Impossible Burger’s product is only available at a select few restaurants in New York and California, though Bareburger will soon add it to their menu. For more on a meatless future, read our guide here.