The Payless ShoeSource store at 4301 Avenue of the Cities is one of 400 around the country that will be shuttered as part of the retailer’s recently announced bankruptcy, according to a document the company released this week.
The Topeka, Kansas-based retailer said Tuesday that it will be immediately closing nearly 400 stores as part of the reorganization. It has more than 4,400 stores in more than 30 countries and was founded in 1956.
Payless plans to reduce its debt by almost 50 percent, lower how much it pays in interest and line up funds. The company says some of its lenders have agreed make available up to $385 million to keep the stores running.
“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” said said Payless CEO Paul Jones in a statement.
Shoppers are increasingly shifting their buying online or going to discount stores like T.J. Maxx to grab deals on designer brands. That shift has hurt traditional retailers, even low-price outlets like Payless.
None of the other Payless locations in the Quad-Cities were on the closure list.
(The Associated Press contributed to this report)