Payless ShoeSource has revealed the locations of the 400 stores it will be closing after filing for bankruptcy protection – and four of them are in Minnesota.
The full list is here, and the ones in Minnesota are:
- 8621 East Point, Douglas Road, Cottage Grove.
- EasTen Shopping Center, Moorhead.
- Medford Outlet Center, Medford.
- Elk Park Center, Elk River.
Payless said that the stores it's identified for immediate closing were ones identified as unprofitable. Staff were informed of the closures Wednesday morning.
It means that the majority of Payless' stores in Minnesota will remain open for now. Up until Wednesday morning, Payless had 32 locations in the state, half of them in the Twin Cities.
However, the company could announce further closures in the near future as it restructures its business.
You can read the original story from 7 a.m. Wednesday below
Payless ShoeSource will close 400 stores across the U.S.
The footwear retailer filed for Chapter 11 bankruptcy protection and has entered into payment plans with its creditors reducing its debt load so it can continue to operate.
However, it will be closing an "underperforming" 400 stores almost immediately, and will carry out a review of its remaining stores to see whether any more should shut down, the Kansas-based company announced.
Payless has 32 stores in Minnesota, according to MyStore411, half of which are in the Twin Cities.
The company will reveal a list of initial closures at 10 a.m. central time, so check back on GoMN then to find out which ones in Minnesota are affected.
Those stores spared the chop will remain open and operating as normal, with the company saying prices won't be changing despite its financial difficulties.
Paul Jones, Payless Chief Executive Officer, said: "This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify. We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process."
Bloomberg reported last week that as many as 1,000 store closures were being considered as Payless renegotiated its debt, with the company struggling with the shift of consumers online to companies like Amazon.
The website says Payless owes 10 times more than it has.
Several retailers including Gordmans, J.C. Penney, Macy's and Gander Mountain have recently announced multiple store closures in Minnesota.