JONESBORO, Ark. – Several Payless Shoes locations in NEA are set to close as the corporate company announced it is entering Chapter 11 bankruptcy status.
In the release Tuesday, April 4, the company announced Payless’ North American entities, as well as two foreign Hong Kong-based entities involved in logistics (CBL) and supply chain (DAL), filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri to, “facilitate the financial and operational restructuring necessary to strengthen its balance sheet and position the Company for long-term success.” Nearly 400 stores will close as a result of the restructuring.
Filing chapter 11 bankruptcy allows a company to restructure itself into profitability and to continue operating as a business. Paul Jones, Payless Chief Executive Officer, said it was a difficult but necessary decision driven by the challenges of the retail environment.
“We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process,” Jones said in a release. “While we have had to make many tough choices, we appreciate the substantial support we have received from our lenders, who share our belief that we have a unique opportunity to enable Payless — the iconic American footwear retailer with one of the best-recognized global brands — to remain the go-to shoe store for customers in America and around the globe.”
Payless store locations closing in NEA include:
- 1518 South Caraway Road in Jonesboro
- Twin City Shopping Center location in West Helena
- Porters Common Shopping Center in Blytheville
- 2212 North Washington Street in Forrest City
- 3115 Harrison in Batesville
Jonesboro will still have a Payless Shoes located in The Mall at Turtle Creek. The 2505 West Kingshighway location in Paragould is also staying open, the release states.
Microsite-Store-Closing-Doc-3.31.17
Follow NEA Report on Twitter and Facebook for the latest news developments from across Northeast Arkansas.
1 Trackback / Pingback