San Diego

3 Local Stores on Payless ShoeSource Closure List

Three San Diego County stores are among 378 nationwide that are being closed immediately by discount retailer Payless ShoeSource, as part of a Chapter 11 bankruptcy filing.

The stores are at East County Square in El Cajon, Encinitas Ranch Town Center in Encinitas, and Border Plaza in San Ysidro, according to a list released by the retailer. Kansas-based Payless ShoeSource currently operates more than 4,400 stores, including about 30 in San Diego County.

The 61-year-old footwear retailer announced April 4 that it is filing to reorganize its finances under Chapter 11, due to issues including mounting debt and slumping sales. As part of a restructuring, Payless ShoeSource has entered into agreements with β€œcertain parties” to reduce its debt load by nearly 50 percent.

It has also negotiated agreements with some current lenders to obtain up to $385 million of debtor-in-possession financing.

The Topeka-headquartered company is among several national retailers that are struggling due to issues including the rise of online shopping, as consumers reduce trips to brick-and-mortar stores.

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