Less than two months after deciding to close 389 stores upon its filing for bankruptcy, Payless ShoeSource revealed that it may close another 400+ locations. The retailer is seeking court approval to trim its brick-and-mortar business if negotiations with landlords fail to result in rent concessions, according to a bankruptcy court filing.
There will be a hearing on the request to close the second round of stores on June 8.
In February 2017, Bloomberg reported that the footwear retailer intended to close as many as 1,000 of its 4,400+ stores, so it’s possible that even more store closures remain on the horizon, depending on the course of negotiations.
Excluding the 389 stores set for closures, Payless still has 3,000 unexpired leases in North America. The retailer is operating with a $305 million debtor-in-possession financing facility provided by a lender group led by Wells Fargo.
In a press release after the April bankruptcy filing, Payless noted that it will continue to focus on omnichannel expansion and international expansion in Latin America and elsewhere as it seeks a turnaround.