Case Study


CLIENT: Payless Shoesource

Gordian prepared a fairness opinion in connection with the Company’s capital raising efforts to fund its immediate liquidity needs.

Business Profiles


In April 2017, Payless filed for chapter 11 with a plan support agreement that would see its debt load reduced by 50% subject to a Plan of Reorganization. The Company ultimately emerged from bankruptcy in August 2017. However, following its exit from bankruptcy, the Company experienced inventory disruption due to payment issues with some of its factories. This resulted in lower-than-forecast sales performance. The declining sales combined with the Company’s strategic decision to build inventory, negatively impacted its liquidity position and forced the Company to obtain incremental financing to fund operations..

Gordian Group was engaged by the Special Committee of the Board of Directors to render fairness opinions regarding two transactions, the first being the issuance of Preferred Shares  and the second in connection with a debt issuance at a foreign subsidiary level. Gordian Group performed detailed valuation and debt pricing analyses in connection with rendering this opinion.


Payless is one of the world’s largest specialty footwear retailers that sells low-cost, high-quality footwear through Company-owned, franchised and joint venture Payless stores and online channels. The Company is based in Topeka, Kansas. Gordian was engaged to prepare a fairness opinion for the Special Committee of the Board of Directors.


Gordian prepared and delivered two fairness opinions to the Special Committee regarding highly complicated transactions amid the backdrop of financial distress that allowed the Company to access much needed capital to forestall a potential bankruptcy or liquidation.