Payless Shoe Source said in April it was immediately closing nearly 400 underperforming stores in the U.S. and Puerto Rico after filing for Chapter 11 bankruptcy protection.
Among them were eight stores in Mississippi, though none were in Northeast Mississippi.
Payless said yesterday it was seeking court approval to close another 400 stores, including 12 in Mississippi
The additional closings statewide would include Hattiesburg, Brookhaven, Jackson, Yazoo City, Ridgeland, McComb, Clarksdale, Meridian, Cleveland, Greenwood, Batesville and Laurel.
Northeast Mississippi stores appear to be spared again this time.. Payless has two stores in Tupelo, as well as locations in Corinth, Starkville and Columbus, and are not on the proposed closure list.
Payless said it needs to accelerate store closures after efforts to get lower rent at the 400 locations failed, according to USA Today. The company said it determined that the latest round of stores had poor sales, physical location or other “specific circumstances” preventing them from being successful.
“While many of those negotiations have been successful and significant savings have been realized, other negotiations have not been as successful,” Payless said in the court filing.
A June 8 hearing is scheduled with the U.S. Bankruptcy Court for the Eastern District of Missouri.
The company in April filed bankruptcy in Missouri, stating it had as much as $1 billion in assets, but up to $10 billion in liabilities with more than 100,000 creditors.