Payless Shoesource to close 400 stores in the U.S.

Posted at 12:00 PM, Apr 05, 2017
and last updated 2017-04-05 12:14:12-04

Payless Shoesource announced it will be closing 400 stores nationwide, including five local locations, as part of their bankruptcy filing.

These 400 locations are closing to reorganize the company's $385 million debt. Payless is also planning to take an $80 million loan to help get out of bankruptcy and is also looking to expand in Latin America.

Payless says it is closing locations that are "underperforming."

"This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify," said Payless CEO Paul Jones. "We will build a stronger Payless for our customers, vendors and suppliers, associates business partners and other stakeholders through this process."

The local stores closing are:

  • Eastern Hills Shopping Center in Williamsville
  • 5999 South Park Avenue in Hamburg
  • 301 Meadow Drive in North Tonawanda
  • Aurora Village SC in East Aurora
  • Eastgate Plaza in Williamsvile

The company says it will honor financial commitments to employees and vendors during this period of reorganization.