Payless ShoeSource has filed for Chapter 11 bankruptcy as it is closing hundreds of store locations.
CNBC reported that the shoe retailer is the latest store to do so as many face competition from online stores.
"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." W. Paul Jones, Payless chief executive officer, said in a statement.
"On April 4, 2017, Payless' North American entities, as well as two foreign Hong Kong-based entities involved in logistics (CBL) and supply chain (DAL), filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri to facilitate the financial and operational restructuring necessary to strengthen its balance sheet and position the Company for long-term success," the company said in an announcement on its website.
Payless said it will use the filing 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.”
In February, Bloomberg reported that the discount footwear store was closing 500 stores and cited "people with knowledge of the matter" that the company was eyeing bankruptcy.
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