Payless Shoe Source Finds a Buyer

After hitting a rough patch last year, Collective Brands Inc., owner of Payless Shoe Source and Stride Rite stores, has finally found a buyer.

According to the Seattle Times, private equity firms Blum Capital and Golden Gate Capital, in partnership with Hush Puppies owner Wolverine Worldwide Inc., will acquire Collective for about $1.32 billion. The new owners plan to split the company's retail and brand development divisions into two separate firms.

"Payless is exactly the type of company in which we seek to invest - a strong brand with unparalleled global scale at an important inflection point in its evolution," Josh Olshansky, a Golden Gate managing director, said.