Bankrupt footwear retailer may close more stores

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Bankrupt footwear retailer may close more stores

By Marianne Wilson - 05/30/2017

Payless ShoeSource is seeking bankruptcy court approval to close more stores.

The chain, which filed for Chapter 11 bankruptcy protection at the beginning of April, may close up to 408 more stores, according to the Chicago Tribune. Payless had originally said it planned to shutter nearly 400 underperforming locations.

Since the filing, Payless has been trying to negotiate reductions in rent at some additional stores, the report said.

"While many of those negotiations have been successful and significant savings have been realized, other negotiations have not been as successful," Payless said in a bankruptcy court filing.

In its court filing, Payless listed liabilities between $1 billion and $10 billion, according to the filing. It had roughly $500 million to $1 billion in assets. The company had stated it plans to continue to operate its business as usual during the filing.

“We intend to use the Chapter 11 process to implement a comprehensive path forward to meaningfully enhance our growth profile and profitability, positioning us to continue to thrive as a sustainable business in the face of the retail industry’s radical, unprecedented transformation,” Payless said in a statement.

Payless said it plans to invest in areas that will help it stay competitive, including its online business and international expansion in Latin America. Payless currently has some 4,000 stores in more than 30 countries.

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