Payless to close 400 locations in the U.S.

Payless ShoeSource is closing just under 400 underperforming stores shortly in the U.S. and Puerto Rico. Within the next couple of months, a joint venture between Great American Group and Tiger Capital Group will handle store closing sales for the impending shuttering flagships.

The Topeka-based company will continue to operate most of its stores, totaling about 3,000 locations. Located in both the U.S. and Puerto Rico, it seems Payless will still have a significant retail presence. However, the company filed for a voluntary petition for reorganization for Chapter 11 bankruptcy earlier this month. As shuttering underperforming stores is typically the first step of improvement, it seems Payless is headed in this route.

Payless filed for the petition on April 4, leading to the upcoming closures as well as closing sales. American Eagle by Payless, Christian Siriano for Payless, Dexter and Dexflex Comfort, and Brash are some of the brands that are retailed at Payless stores. The privately held company, owned by Golden Gate Capital and blum Capital Partners, has over 4,000 locations worldwide in over 30 countries. Currently, the company houses 22,000 employees. How many employees will be affected by these new store closures has not yet been disclosed.