Payless files chapter 11 bankruptcy, Cove store among 400 to close
By LYNETTE SOWELL
Payless ShoeSource announced on April 4 that it has filed for chapter 11 bankruptcy and will be closing about 400 stores nationwide.
Among those 400 stores is the Copperas Cove Payless, located at 301 Constitution Dr.
Meghan Spreer with Payless ShoeSource media relations said the company doesn’t have an effective closing date for the Copperas Cove store and that closing dates will vary by store to store based on the liquidation process.
On the list of stores set to close, Copperas Cove Payless shoppers are directed to shop at two area stores which will remain open, the Killeen store at 1200 Lowes Blvd. or the Harker Heights store, at 201 E. Central Texas Expwy.
Locally, the Payless located at the Killeen Mall will also be closing.
In its press release, the company stated that the chapter 11 filing is “to facilitate the financial and operational restructuring necessary to strengthen its balance sheet and position the Company for long-term success.”
The bankruptcy is intended to “optimize its store footprint, with the immediate closure of nearly 400 underperforming locations in the U.S. and Puerto Rico and work to aggressively manage the remaining real estate lease portfolio either by modifying terms, or evaluating closures of additional locations.”
Paul Jones, Payless Chief Executive Officer, said that the action is a “difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify.”
According to the press release, customers will have full access through the Payless corporate website www.paylesscorporate.com to find information about stores where they can shop if their current store is being closed, as well as information about going-out-of-business sales.