Shoe chain bankruptcy to cost Brookville jobs

Shoe retailer’s bankruptcy filing to hit Brookville hard.

Payless distribution center in town will be closing as part of company’s Monday bankruptcy, along with all its U.S. stores.

The Payless ShoeSource distribution center in Brookville will close as part of its Monday bankruptcy, along with all of its United States stores.

Payless does not have the details or timeline for when the facility will close, but the company has confirmed the facility that employs roughly 550 will close, said Brookville city manager Gary Burkholder.

“Any time an employer leaves the community, it’s a sad day,” he said.

Payless will close all 2,500 of its stores in the U.S., a spokeswoman told the Dayton Daily News Friday afternoon. Liquidation sales at stores started Sunday with most sales ranging from 10 percent to 30 percent off currently.

Store are expected to be open through at least March, with many remaining open until May. Purchasing options online have already been shut down.

Stores will accept gift cards through March 11, according to the company. All rewards programs and outstanding merchandise coupons have been discontinued.

Payless filed for Chapter 11 bankruptcy Monday, its second after emerging from an April 2017 filing

about 18 months ago. It will close all 2,500 U.S., Puerto Rico and Canada stores, with a combined total $470 million in outstanding debt.

The Payless name will live on in its 420Latin American stores and 370 international franchise operations.

“We have worked diligently with our suppliers and other partners to best position Payless for the future amidst significant structural, operational, and market chal- lenges. Despite these efforts, we now must wind down our North American retail operations under Chapter 11 and the CCAA,” said Stephen Marotta, chief restructuring officer of Payless.

Collective Brands, the former owner of Payless before private equity firms Golden Gate Capital and Blum Capital Partners bought Payless in 2012, first announced it would build the 600,000 square-foot Eastern Distribution Center in May 2007.

Local officials credited the Payless facility for bringing other major projects to the area, including the $90 million Proctor & Gamble distribution center at the Dayton Airport.