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Payless Prepares Second Bankruptcy With Store Closures

  • Most or all of its North American outlets may be shut down
  • Shoe chain had cut debt by half with Chapter 11 filing in 2017

Photographer: Scott Eells/Bloomberg

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Payless Inc. is preparing for its second trip to bankruptcy court with a plan that could drastically shrink the size of the discount shoe chain, according to people with knowledge of the matter.

The retailer is seeking a loan to get through bankruptcy proceedings and discussing plans to shutter a significant portion, and potentially all, of its North American stores, said the people, who weren’t authorized to speak publicly. A representative for Topeka, Kansas-based Payless declined to comment.