Payless Shoes declares bankruptcy

Payless Shoes is going into creditor protection in both the United States and Canada, and will likely shutter all of its stores.

The company claims that its stores are “insolvent,” and that 220 of the Canadian locations couldn’t produce rent for the current month.

Will Canadian employees at Payless Shoes see any severance pay in this scenario?

Lior Samfiru is a Toronto Employment Lawyer and partner at Samfiru Tumarkin LLP. He joined The Morning Show on Global News Radio 640 Toronto to explain what the government can do to improve support for employees who often go empty-handed following a company’s bankruptcy.