Payless ShoeSource to close 7 NJ stores

JERSEY CITY, NJ — Payless ShoeSource will close seven stores in New Jersey as part of its plan to shutter 400 locations across the country after filing for bankruptcy.

The company operates 4,400 discount shoe stores across the world, including several dozen in New Jersey.

The New Jersey Payless locations to shut shop are: Loews Shopping Center, East Rutherford; Marlton Crossing, Marlton section of Evesham; Mid State Mall, East Brunswick; Phillipsburg Mall, Phillipsburg; Bloomfield Avenue, Bloomfield; Acme Plaza, Cape May Court House section of Middle Township; Marlboro Plaza, Marlboro.

The Topeka-based company has filed a Chapter 11 petition in bankruptcy court in St. Louis, stating it had just $1 billion in assets and $10 billion in liabilities. The company said it plans to shed debt and boost online sales in a bid to stay competitive.

Shoppers are increasingly shifting their buying online or going to discount stores like T.J. Maxx to grab deals on designer brands. That shift has hurt traditional retailers, even low-price outlets like Payless.

In fact, Moody’s Investor Service said earlier this year that the number of ‘distressed’ retailers –those with cash problems and lots of debt that are facing strong competition–is at the highest rate since 2009. It named Payless as one of the retailers.