Payless announces 45 layoffs at Topeka headquarters

Payless ShoeSource announced Tuesday the layoffs of 45 people from its headquarters on S.E. 6th.

A statement from the company said an additional 97 open positions wouldn’t be filled. The unfilled positions are from various parts of Payless ShoeSource’s global operations, the statement said, and it wasn’t clear how many of those jobs are in Topeka.

“Today Payless ShoeSource conducted a business restructuring to better align and focus the organization and its resources since the close of the sale of Collective Brands in October,” the company said in a news release.

Payless has a history in Kansas going back more than 50 years. The company was founded in Topeka in 1956, with the then-novel idea of having customers browse the racks of shoes themselves, according to the company’s website.

In 2007, Payless bought Stride Rite Corp. to form Collective Brands. The company had financial struggles during the Great Recession and battled with other shoe companies over trademarks, but also had success stories, such as expanding into the Middle East and Russia and bringing a new focus on fashionable footwear, including a line designed by Project Runway’s Christian Sariano.

In 2009, Collective Brands closed the Payless distribution center at 5040 N.W. US-24 highway. The center had employed about 550 people. The building was sold to metal fabrication company PTMW Inc.

Collective Brands was sold to shoe company Wolverine Worldwide and private investment firms Blum Capital Partners and Golden Gate Capital for $2 billion in 2012. Stockholders received $21.75 in cash per share. The sale followed a record loss and the closing of hundreds of underperforming stores the previous fiscal year.

Wolverine Worldwide acquired Collective Brands’ “Performance + Lifestyle Group,” which includes the Sperry Top-Sider, Saucony, Stride Rite and Keds brands. The capital firms bought Payless and Collective Licensing International, a Colorado-based company that focuses on launching and growing brands for the youth market.

Company officials said after the sale that Payless’ headquarters would remain in Topeka, but said it was too early to discuss staffing levels.

Doug Kinsinger, Greater Topeka Chamber of Commerce and Go Topeka CEO, said staff members had been working with Collective Brands’ leadership after the sale to discuss ways the community could assist the company. Gov. Sam Brownback, state Commerce Secretary Pat George and local government officials also participated in the meetings. It isn’t unusual for Go Topeka staff members to visit large employers in the area to stay up to date on their needs, Kinsinger said.

Kinsinger said in a news release the chamber regretted the loss of 45 jobs at Payless, but the changes would position the company for a stable financial future.

“When a company, such as Payless, is acquired, it is expected that some changes will take place during the transition phase. These changes allow the acquiring company to plan for future sustainability and profitability,” he said. “We are optimistic that with the financial support of new owners and new corporate leadership, Payless is positioned with a new growth strategy which will enable Payless to remain headquartered in Topeka.”

Tuesday’s announcement said selling off the “Performance + Lifestyle Group” contributed to the layoffs, because employees in the Topeka headquarters had supported those operations. Laid off employees will receive severance and outplacement services, it said.

As of May 1, Collective Brands employed 1,100 people in Topeka.