Payless Shoesource filed for bankruptcy after accumulating more than $435 million in debt, according to USA Today.
However, this does not mean that the footwear chain will be gone completely. The company filed for a Chapter 11 bankruptcy, which “generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time,” according to uscourts.gov.
The total of stores closed–about 800– 20% of the 4,000 Payless locations in the United States.
“The list includes three locations in Hawaii, 11 in Connecticut, 13 in Louisiana, 17 in Arizona, 17 in New Jersey, 18 in Michigan, 39 in Florida, and a whopping 117 stores in Texas and 132 in California,” according to time.com.
Payless is not the only store in jeopardy. Places like Office Depot, Barnes & Noble, Children’s Place, Sears, and Walgreens closed hundreds of their store locations last year. Macy’s, JCPenney and Staple also announced that they plan to close some of their stores this year.
It is likely they will close up the 800 stores mentioned before within the next few months. Here is the list of all the locations that will likely be closed down. However, they are not the only ones facing problems inside and outside their industry.
What has occurred within is actually not too complicated. In short, all those with physical stores such as in malls are being slowly crushed by online retailer competition. Which are on average cheaper and of course more convenient to shop at. As a result possibly one in three malls will close down in the near future.
What effects this will have on the American economy remain to be seen.