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Payless plans additional store closures across US

Payless plans additional store closures across US
Posted at 1:10 PM, May 31, 2017
and last updated 2017-05-31 16:27:18-04

Payless Shoesource has added hundreds of stores to its lengthy closure list one month after announcing its plans to shut down 400 U.S. stores as part of a Chapter 11 bankruptcy filing.

In April, the company announced it would close 400 stores as part of a plan to reorganize $385 million in debt. The company is taking out an $80 million loan to help get out of bankruptcy and restructure the business.

The following San Diego County stores are on the list of closures:

-- El Cajon (1255 E. Main Street)
-- El Cajon (East County Square, 13465 Camino Canada)
-- Encinitas (Encinitas Ranch Town Center, 1010 N El Camino Real)
-- Santee (Santee Trolley Square, 9850 Mission Gorge Road)
-- San Ysidro (Border Plaza, 501 San Ysidro Boulevard)
-- Vista (1841 University Drive)

Two other county locations may close, depending on ongoing negotiations:

-- San Diego (3998 Clairemont Mesa Boulevard)
-- Chula Vista (63 N. Broadway)

The company released an updated list of stores being closed (CLICK HERE), as well as a list of stores that could close, pending negotiations (CLICK HERE).

While the company goes through reorganization, Payless said it would honor its financial commitments to employees and vendors. The company said that it would also continue to accept gift cards at stores and online.

The company said it has no plans to go out of business and intends to emerge from Chapter 11.

Before the Chapter 11 filing, Payless employed 22,000 workers.