The Topeka, Kansas-based retailer on Wednesday released a list of the almost 400 stores it plans to close as part of a reorganization plan it laid out in a Chapter 11 bankruptcy filing.
Reports began appearing on the internet in early January that Payless could close 1,000 stores as a part of a restructuring plan with its lenders.
Payless' North American entities, and two of its Hong Kong-based entities, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri.
The only Nebraska Payless stores on the list of locations slated to close are one in Omaha and one in Bellevue.
The filing was to facilitate financial and operational restructuring necessary to strengthen its balance sheet and position the company for long-term success, according to the media release. It will also work to aggressively manage the remaining real estate lease portfolio, either by modifying terms or evaluating closures of additional locations. The company said that it will also continue to accept gift cards at stores and online. "If there is not an available opening, Payless associates will receive severance pay and, if eligible, benefits to help in their career transition".
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The Payless stores at 1210 S. 77 Sunshine Strip and 1102 S. Expressway 83 in Harlingen were not on the company's list of stores to be closed.
Spreer said officials "don't have effective close dates because it depends on the liquidation process store-by-store".
"This is a hard, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify", Paul Jones, Payless chief executive officer, said in the media release.
Payless has approximately 4,400 stores in more than 30 countries.
The Payless Chapter 11 bankruptcy filing adds the company to a long list of other retailers cutting back on their physical presence mostly due to competition from online sales.
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