Shoe chain Payless files for bankruptcy

Payless Inc., the bargain shoe store, filed for bankruptcy to slash debt as the retail spiral persists.

The chain sought Chapter 11 protection in St. Louis, listing less than $10 billion in liabilities and less than $1 billion in assets.

Payless has stores at Lindale Mall in Cedar Rapids and at Coral Ridge Mall in Coralville.

Its website said it would list store closings after 10 a.m. Wednesday.

The Topeka, Kan.-based company employs almost 22,000 people, according to its website, and has more than 4,000 stores in 30 countries. In the weeks before the filing, it was said to be considering closing as many as 500 'underperforming' locations — 400 in the United States and Puerto Rico — Bloomberg News reported.

U.S. retailers have been trying to navigate changing consumer habits, including a shift to online shopping and fewer visits to the mall. In the past year, clothing chains American Apparel and Limited Stores have begun shutting down retail operations, while dressmaker BCBG Max Azria and discount chain Gordmans Stores filed for bankruptcy with plans to auction their assets.

Even a behemoth such as Sears Holdings Corp. has warned investors that its prospects to continue as a going concern are dimming.

Payless sprouted from a lone store that opened in 1956 in Topeka, offering low prices and customer self-service. The chain has been owned by private-equity firms Golden Gate Capital and Blum Capital Partners since a 2012 buyout, part of the split of publicly traded Collective Brands Inc.