"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.
Related: Family Christian closing all stores nationwide
Nearly 400 “underperforming locations” will be closed in the United States and Puerto Rico.
The Topeka, Kansas, based company 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.
Other stores that have announced that some or all locations were closing this year include Macy's, GameStop, Family Christian Stores and Bebe.
Payless will post a list of store closures on its website at paylessrestructure.com.