Everything is Relative
Everything is relative. Apparently, as we noted above, Payless Shoesource set the bar for what constitutes a "successful reorganization": not liquidating. We think there should be a tail or clawback for such labels given the state of retail these days and the seemingly strong likelihood of retail Chapter 22s. Apropos, Payless is taking "additional steps" to sure up its footing, which apparently includes "a significant workforce downsizing to occur this week." While stores may be open, (some) jobs preserved and tax revenue maintained (assuming the company doesn't just accumulate net operating losses), this news probably doesn't sound all too "successful" to those employees who now look like they're going to have a rough holiday season. Like we said, everything is relative: what may have been a "successful reorganization" to those lawyers touting as much in court looks entirely different to those who are now worried about Christmas.