REPORT: Payless to file for bankruptcy, close all 2,300 stores

A Payless store during a whole store sale.
Photo credit USA Today

ST. LOUIS, Mo (KMOX) - Shoe discount retailer Payless ShoeSource Inc is planning to close all 2,300 stores after filing for bankruptcy later this month, according to a report by Reuters. 

A source close to the situation told Reuters that the stores will be running going-out-of-business sales soon.

President David Cook, of United Food and Commercial Workers Local 655, made the following statement about the news:

 “If in fact this comes to pass, it’s always sad to see good brick-and-mortar jobs go away,” Cook said. “But the Payless employees in St. Louis are lucky enough to have a collective bargaining agreement that gives them a seat at the table, like all members of Local 655 have. This is something too many non-union employees, including employees of other Payless in locations across the country, don’t have. Our Payless members here have a Local 655 union contract that has language to protect the benefits and wages they have earned and provides guaranteed severance pay to help make their transition easier. We have requested a meeting with Payless to work toward the best possible deal for our hard-working members as these stores begin to close.”

This is just another brick and mortor store to be hit as more and more retailers continue to shop online for merchandise.

Last year, Toys "R" Us was forced to liquidate all of their stores after nearly 60 years.

READ: It's the end of Toys "R" Us

This wouldn't be the first time Payless has filed for bankruptcy. In April 2017, the company filed for bankruptcy.

It was also reported that Payless had been trying to find a buyer but no deal could be made. However, Reuters reports a last minute deal could be made after the company files for bankruptcy.