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Payless ShoeSource files for bankruptcy, to close 400 stores
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Shoppers visit a Payless ShoeSource footwear store in San Francisco, United States, in April 2014. (Shutterstock/File)
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nternational footwear retailer Payless ShoeSource has announced that it has filed for Chapter 11 bankruptcy and will close 400 stores.
The news, which comes hot on the heels of news of other bankruptcies from retailers such as Nasty Gal and Wet Seal Inc, was not unexpected. Similar stores, such as Macy’s Inc. and Sears Holdings Corp., have also expressed plans to close more than 1000 stores.
The 60-year-old retailer said it had filed “to facilitate the financial and operational restructuring necessary to strengthen its balance sheet and position the company for long-term success.”
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The company also aims to “optimize its store footprint with the immediate closure of nearly 400 underperforming locations in the United States and Puerto Rico and work to aggressively manage the remaining real estate lease portfolio either by modifying terms or evaluating closures of additional locations,” according to Women's Wear Daily.
“This is a difficult, but necessary decision driven by the continued challenges of the retail environment, which will only intensify,” said the company's CEO W. Paul Jones in a statement. “We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process." (sul/kes)
