Payless ShoeSource may be on track to close 408 additional stores as part of their bankruptcy plan in light of the chain’s increasing financial difficulty. The chain had filed for chapter 11 bankruptcy only in April with the plan of closing 400 physical locations with plans to focus their efforts towards online sales. As their financial situation has become clearer, the chain sought permission from a federal bankruptcy judge to close an additional 408 locations.
This number would double the chains original plans, bringing the closure to a staggering 808 locations. Payless attempted to negotiate and secure a lower rent cost in these locations, but failed to do so. In response, they went back to the drawing board and analyzed their stores again, taking stock of which had poor sales, poor location, or “specific circumstances” that kept them from earning success.
The hearing for the additional closures is set to take place on June 8th. In the mean time, Payless continues to negotiate lower rent with landlords in existing locations.
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