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 “certain 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.