It has been a hard time for the retail industry recently. Another famous retail store has announced they will be closing up to 400 stores immediately.
Payless ShoeSource filed for bankruptcy due to competition from online retailers and other setbacks.
The company filed for Chapter 11 bankruptcy for reorganization. Payless said under this reorganization plan, it will lower the debt, attract new capital, boost its e-commerce efforts and emerge stronger and more competitive.
Payless Shoesource currently operates about 4,400 stores in 30 countries, including the U.S.
Paul Jones, the CEO of Payless, said competition will continue to get rougher. "This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify," Jones stated.
Payless plans to make strong efforts to allow customers to connect with Payless online. They will also investigate the possibly of expanding the company internationally in Latin America and elsewhere.
Payless joins the list along with Sears, J.C. Penney, Kmart, and Macy's planning to close this year.
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