Payless Shoe Source announces bankruptcy

Payless Shoe Source, a widespread discount shoe store chain, announced on Tuesday that it’s seeking bankruptcy court protection.

According to an article on the NewJersey.com website, the company, which is based in Topeka, recently filed a Chapter 11 petition for bankruptcy in St. Louis.

Read more: Bankruptcy Lawyers, Hamilton NJ

Payless Shoe Source is joining the ranks of other retailers such as J.C. Penny, Macy’s, Radio Shack, Gamestop, and HH Gregg that have suffered in a changing retail market and have been forced to shut down store locations across the country.

“The Topeka-based company filed a Chapter 11 petition in bankruptcy court in St. Louis, stating it had just $1 billion in assets and $10 billion in liabilities. The company said it plans to shed debt and boost online sales in a bid to stay competitive,” the article reads.

The company released a statement on Tuesday explaining that it plans to implement a strategic plan moving forward to enhance the company’s growth and profitability.

“As part of its restructuring, the company also said it would close 400 of its stores in the U.S. … The company operates 4,400 stores across the world, including several in New Jersey.

Other media reports say at least nine Payless Shoe Source stores will close in the New York City metro area. More than 70 stores are spread out across New York State and New Jersey.

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

New Jersey Store closings include:

• 146 Smith Street in Perth Amboy
• 306 Route 9 North in Woodbridge

 

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