NEW YORK – More store closings are coming to a mall near you.
Payless ShoeSource filed for Chapter 11 bankruptcy on Tuesday.
It’s the latest blow to brick-and-mortar retailers, which are struggling to survive in the age of Amazon.
Online shopping has caused a decline in foot traffic at America’s malls, once a mainstay for companies like Payless.
“This is a difficult but necessary decision driven by the continued challenges of the retail environment, which will only intensify,” said Payless CEO W. Paul Jones in a statement.
The company also announced it will immediately close nearly 400 stores in the U.S. and Puerto Rico.
It has more than 4,400 stores in over 30 countries, according to its website.
— CNN (@CNN) April 4, 2017
Payless is owned by two private equity groups, which bought the network of shoe stores in 2012.
But, such acquisitions haven’t been a panacea.
And, these aren’t the only brands having issues.
In March, Moody’s put out a report listing 19 retailers – including Payless – it considers “distressed.”
J. Crew and Claire’s also made the list.
Macy’s, JCPenney and Staples have all announced far-reaching plans to close stores this year.
Sears, which also owns Kmart, has warned investors it can’t promise it will stay in business.
On Tuesday, Ralph Lauren announced it’s shutting down its Fifth Avenue store.
And, last month, RadioShack filed for its second bankruptcy in two years.