Discount footwear retailer Payless Shoesource announced Tuesday plans to close 400 stores in the United States as part of a Chapter 11 bankruptcy filing. The Kansas-based retailer has 4,400 locations spread across 30 nations.
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Closing 400 locations is part of a plan to reorganize $385 million in debt. The company will take an $80 million loan in order to help get out of bankruptcy. The company also said it plans on expanding in Latin America.
In a statement, Payless called the 400 location its closing as "underperforming." Payless said announced which 400 locations are closing late Tuesday evening on this website.
“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify. We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process," Payless CEO Paul Jones said.
The company said that it is hiring an outside company to oversee the liquidation of its inventory at the 400 closing locations.
While the company goes through reorganization, Payless said it will honor its financial commitments to employees and vendors. The company said that it will also continue to accept gift cards at stores and online.
According to Payless, the company employs 22,000 associates.