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.