Struggling US retailer Payless ShoeSource is headed for bankruptcy, reports Bloomberg.
Payless, which has not commented on the report, operates some 4000 stores globally and under the reported Chapter 11 protection likely to be sought next week, will immediately shutter between 400 and 500. As many as 1000 may be closed as part of the restructuring plan aimed at rescuing the 61-year-old company.
The company is owned by Golden gate Capital and Blum Capital Partners, who bought the business in 2012 as part of the break-up of Collective Brands. Headquartered in Kansas, it employs about 22,000 staff.
Bloomberg cited sources familiar with the discussions but unable to comment publicly because they were not public.
