INTERNATIONAL - US discount retailer Payless ShoeSource Inc on Monday filed for voluntary Chapter 11 bankruptcy protection for the second time, along with its North American subsidiaries, and said it would wind down all North American stores by the end of May.
The retailer will close about 2,500 stores in North America starting from the end of March and wind down its e-commerce operations.
Reuters had reported last week that the company was planning to close its stores when it files for bankruptcy for the second time in as many years.
“The prior proceedings left the company with too much remaining debt, too large a store footprint and a yet-to-be realized systems and corporate overhead structure consolidation,” Chief Restructuring Officer Stephen Marotta said.
Stores outside North America were not included in the Chapter 11 filing and will continue operations, the retailer added.