Payless Shoesource

Payless ShoeSource Inc. is recalling about 80,000 pairs of children's sneakers after two children ingested the teddy bear metal clasps on the shoes, causing one of the children to choke, the Consumer Product Safety Commission said Tuesday. The recall involves two types of "Coasters" brand sneakers--the "Royal Zipper Low" and "White Zipper Low"--in toddler sizes that were sold nationwide starting in March, the CPSC said. Company officials couldn't be reached for comment.

Collective Brands Inc., which owns footwear brands such as Sperry Top-Sider and Keds as well as the retailer Payless ShoeSource, will be split in two by multiple buyers in a purchase valued at $2 billion, including debt. Wolverine Worldwide, Blum Capital and Golden Gate Capital formed an acquisition company to buy Collective for $21.75 a share. The deal was unanimously approved by Collective's board and is expected to close by early in the fourth quarter. The price represents a 104% premium on Collective's 30-day average stock price before Aug. 24, when the company first announced that it was looking into a strategic and financial shift for its operations.

Payless ShoeSource Inc., the largest U.S. shoe retailer, cut its fiscal first-quarter earnings estimate after the company missed consumers' switch to spring fashions such as women's colored footwear and sandals. Profit will be $1 to $1.10 a share for the quarter ending May 4, the company said. Payless is expected to earn $1.38, the average estimate of five analysts polled by Thomson Financial/First Call. Payless earnings were $1.30 a year earlier. Shares of Topeka, Kan.-based Payless fell $4.

Collective Brands Inc., the parent of Payless ShoeSource and Stride Rite, will close 475 stores after reporting a large second-quarter loss. The company also said Wednesday that it was conducting a review of "strategic and financial alternatives," which could mean a sale of the company. The store closures affect underperforming locations and will occur over the next three years, the Topeka, Kan., company said. About 400 of the stores slated to close are Payless locations in the U.S., Canada and Puerto Rico; 75 are Stride Rite children's shoe store locations.

Payless ShoeSource Inc. said Tuesday that it would buy shoemaker Stride Rite Corp. for about $800 million, adding Keds and other brands to its stable and expanding its retailer distribution. The news sent shares of Stride Rite up more than 30% in extended trading, while Payless stock rose more than 4%. The $20.50-a-share offer represents a 33% premium over Stride Rite's closing price Tuesday.

Collective Brands Inc., the parent of Payless ShoeSource and Stride Rite, will close 475 stores after reporting a large second-quarter loss. The company also said Wednesday that it was conducting a review of "strategic and financial alternatives," which could mean a sale of the company. The store closures affect underperforming locations and will occur over the next three years, the Topeka, Kan., company said. About 400 of the stores slated to close are Payless locations in the U.S., Canada and Puerto Rico; 75 are Stride Rite children's shoe store locations.

May Department Stores to Expand: The St. Louis-based retailer said it plans to invest $5 billion in the next five years to expand and remodel its stores nationwide. The company, whose holdings include the Robinsons-May and Payless ShoeSource chains, said it will open 15 department stores in 1994. The company also said it will open 240 Payless ShoeSource stores and 200 Payless Kids stores nationwide in 1994. Some new stores will be opened in California, the company said.

May Department Stores to Buy Shoe Chain: The St. Louis-based retailer, the nation's sixth-largest, said its fast-growing Payless ShoeSource subsidiary will acquire Columbus, Ohio-based Kobacker Co. Terms of the deal were not disclosed. Kobacker, a private retailer, is shedding almost all its assets. Six hundred of the 679 Kobacker stores will be remodeled and reopened.

Shoe retailer Payless ShoeSource Inc. said third-quarter profit more than doubled as it sold more stylish women's shoes at full price. Net income climbed to $29.6 million, or $1.30 a share, from $13.3 million, or 59 cents, a year earlier, the company said in a statement. Sales rose 2.3% to $713 million. Shares of Topeka, Kan.-based Payless rose 84 cents to $54.40 on the NYSE.

Walt Disney Co. said it would work with Payless ShoeSource Inc. on a line of Disney-themed footwear as part of a deal that cuts out the licensing middleman and has the companies working more closely together on shoe design and marketing. The direct-to-retail agreement calls for Burbank-based Disney to collaborate with Payless to develop and sell shoes exclusively in 4,600 Payless stores and on Payless.com.

Payless ShoeSource Inc. is going green as it plans to sell a line of ecologically friendly shoes and handbags at low prices. The Topeka, Kan.-based chain said the first eight to 12 styles of women's shoes will be in 500 to 1,000 of its 4,500 stores and its online store early next year. The shoes will sell for an average of less than $30 a pair. They will be joined soon with styles for men and children, Payless said. The new brand, which has yet to be named, will be made from materials with less effect on the environment, such as organic cotton and linen, hemp and recycled rubber soles, the company said.

Payless ShoeSource, which last year changed its name to Collective Brands Inc., agreed to pay $30 million to rival K-Swiss Inc. to settle allegations that it violated the Westlake Village company's trademark by selling shoes with five-stripe designs. Under the deal, Payless agreed not to sell "confusingly similar" footwear, K-Swiss said in a regulatory filing. Payless, based in Topeka, Kan., will be allowed to sell its inventory of disputed shoes through the end of the year. A trial was scheduled to begin July 8 in federal court in Los Angeles.

Patricia Field, the stylist and costume designer who made "Sex and the City" a fashion phenomenon, isn't a big believer in quiet glamour. From floppy fedoras and massive fabric flowers to oversized brooches and skintight breeches, Field festooned the fab four of the HBO series and newly released film with a steady stream of statement pieces -- including cheap 'n chic finds from New York's eclectic street vendors. Now the stylist has brought her penchant for frugal flash to her second capsule collection for discount shoe seller Payless ShoeSource, which hit stores last week, just in time for the movie's opening.

Payless ShoeSource Inc. said Tuesday that it would buy shoemaker Stride Rite Corp. for about $800 million, adding Keds and other brands to its stable and expanding its retailer distribution. The news sent shares of Stride Rite up more than 30% in extended trading, while Payless stock rose more than 4%. The $20.50-a-share offer represents a 33% premium over Stride Rite's closing price Tuesday.

Walt Disney Co. said it would work with Payless ShoeSource Inc. on a line of Disney-themed footwear as part of a deal that cuts out the licensing middleman and has the companies working more closely together on shoe design and marketing. The direct-to-retail agreement calls for Burbank-based Disney to collaborate with Payless to develop and sell shoes exclusively in 4,600 Payless stores and on Payless.com.

When Matt Rubel took over as chief executive of Payless ShoeSource Inc. last summer, he inherited a company a little down at the heels. With more than 4,600 stores, Payless is the largest specialty shoe retailer in the country. But years of conservative management had left it in the worst place for a seller of fashion -- out of date.

Payless ShoeSource, which last year changed its name to Collective Brands Inc., agreed to pay $30 million to rival K-Swiss Inc. to settle allegations that it violated the Westlake Village company's trademark by selling shoes with five-stripe designs. Under the deal, Payless agreed not to sell "confusingly similar" footwear, K-Swiss said in a regulatory filing. Payless, based in Topeka, Kan., will be allowed to sell its inventory of disputed shoes through the end of the year. A trial was scheduled to begin July 8 in federal court in Los Angeles.

Payless ShoeSource Inc., the biggest U.S. shoe retailer, plans to close or sell an additional 292 stores after second-quarter earnings declined and sales fell for the 10th time in the last three years. Payless already planned to shut or sell about 411 stores, including 181 of its Parade and 230 of its namesake locations. The Topeka, Kan.-based company said net income fell 29% to $3.7 million, or 5 cents a share, from $5.2 million, or 8 cents. Sales dropped less than 1% to $727.9 million.

Payless ShoeSource Inc., the biggest U.S. shoe retailer, plans to close or sell an additional 292 stores after second-quarter earnings declined and sales fell for the 10th time in the last three years. Payless already planned to shut or sell about 411 stores, including 181 of its Parade and 230 of its namesake locations. The Topeka, Kan.-based company said net income fell 29% to $3.7 million, or 5 cents a share, from $5.2 million, or 8 cents. Sales dropped less than 1% to $727.9 million.

Shoe retailer Payless ShoeSource Inc. said third-quarter profit more than doubled as it sold more stylish women's shoes at full price. Net income climbed to $29.6 million, or $1.30 a share, from $13.3 million, or 59 cents, a year earlier, the company said in a statement. Sales rose 2.3% to $713 million. Shares of Topeka, Kan.-based Payless rose 84 cents to $54.40 on the NYSE.