Payless ShoeSource has announced that it has filed Chapter 11 bankruptcy and will close nearly 400 stores.
Payless ShoeSource in Hermiston and Pendleton will not be affected by the closures.
The Kansas City Star reported that Payless expects to continue to operate its business, honoring employees’ wages, health care coverage and other benefits without interruption. It also said customers’ existing gift cards with Payless stores and Payless.com will be honored. Future obligations to vendors and suppliers also will be honored, the company said.
In its filing, Payless said its assets were worth no more than $1 billion but that its liabilities were at least that large and could be as high as $10 billion. The Chapter 11 filing was made in federal bankruptcy court in St. Louis.
Payless will close five stores in Oregon. Those stores are located in La Grande, Hood River, Newport, Springfield and Milwaukie.
For the full story, visit the Star’s website.
