Payless files for bankruptcy

Payless ShoeSource announced that they have filled for chapter 11 bankruptcy on less than 1 billion dollars in assets and 10 billion dollars in liabilities, and will immediately close 400 stores.

Payless has been in negotiations with lenders and at one point closed 1000 stores as part of a restructuring plan. While additional store closures are likely, the company plans on working to maintain the remaining stores.

Payless has a total of 4400 stores in 30 countries and employs 22,000 people.

In 2012, the company was bought by Golden Gate Capital and Blum Gate Partners.

"This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify," said CEO Paul Jones in a statement. "We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process."

2017 appears to be a very tough year for brick-and-mortar retail stores.

Bebe recently announced they will be closing all their stores, and BCBG has also announced store closures. One of America's biggest retail giants, Macy's, has announced they will close 68 stores. As foot traffic declines at physical retail locations and Americans turn more to e-commerce, the retail bubble has begun to burst.

If these companies expect to rebound, investment in online sales could be their answer.

photo:via Payless Facebook