Brownwood News – The effects of a growing consumer trend to purchase online have hit another popular brick-and-mortar retailer. Payless ShoeSource filed for Chapter 11 bankruptcy on Tuesday and announced the closure of 400 stores. The location in Brownwood was included in the list published online at 10 a.m.
“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” Payless CEO W. Paul Jones said in a public statement.
The footwear retailer announced the company will immediately close 400 stores in the U.S. and Puerto Rico in an effort to reduce debt by 50 percent. Additional closures are possible in the future. Payless has 4,400 stores in 30 countries and employs over 20,000 people. It was bought in 2012 by private equity firms Golden Gate Capital and Blum Capital partners.
Brownwood Mayor Stephen Haynes addressed some local concern with businesses closing in his 2017 State of the City Address.
“It is concerning, but it is a trend,” explained Mayor Haynes. “The type of businesses in the retail sector that are going to change, due to internet shopping.” Mayor Haynes stated grocery stores and restaurants were booming, while “soft goods” were in decline, because of the ease of online shopping.
