Hedge fund investor blamed for tanking Payless

April 29, 2019

Payless ShoeSource filed for bankruptcy in February and announced that it would close all its stores in the U.S. along with the company’s website. Some believe that the company’s failure can be blamed on Alden Global Capital, the retailer’s majority shareholder, which took steps that undermined Payless’ chances for a turnaround while helping the firm reap benefits at the expense of employees and creditors. A judge in the Eastern District of Missouri ruled last week that measures be put in place that would ensure that creditors and lenders get equal treatment to Alden during the bankruptcy process.

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