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Payless ShoeSource to close 400 stores

On Tuesday, Payless ShoeSource filed a Chapter 11 reorganization petition in bankruptcy court and said it plans to close 400 "underperforming" stores in the United States and Puerto Rico.

The discount chain said under its reorganization plan, it will get rid of debt, bring in new capital, and increase its e-commerce efforts in order to go up against major online companies like Zappos.com. Payless, founded in Topeka, Kansas, in 1956, has around 4,400 stores in 30 countries. "This is a difficult but necessary decision driven by the continued challenges of the retail environment, which will only intensify," Payless CEO W. Paul Jones said in a statement. "We will build a stronger Payless for our customers, vendors, and suppliers, associates, business partners, and other stakeholders through this process."