Three Kansas City-area Payless shoe stores are among about 400 locations that Topeka-based Payless ShoeSource is closing after it announced Tuesday it had filed for bankruptcy.
Payless ShoeSource is one of the largest specialty family footwear retailers in the country and is the latest retail chain to seek protection from its creditors while it reorganizes in federal bankruptcy court. Recently, The Limited, Gordmans and Wet Seal announced bankruptcies.
On Wednesday, Payless posted a list of closures, which include the stores at 11115 E. Truman Road in Independence, the newly redeveloped Truman’s Marketplace in Grandview and in the North Cass Shopping Center in Belton. There are more than a dozen Payless stores in the Kansas City area.
The company said Tuesday it will immediately close poorly performing stores in the U.S. and Puerto Rico. It hopes to modify leases for some other stores or evaluate them for closure.
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In a statement, W. Paul Jones, CEO of Payless, said, “This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify.”
Payless was bought by private equity firms Golden Gate Capital and Blum Capital Partners in 2012 as part of a split of Collective Brands Inc. Moody’s Investors Service and Standard & Poor’s both recently cut the ratings of Payless’ loan, pointing to revenue declines and mounting debt.