Payless continues to struggle with an unsustainable debt load, and is considering closing 1,000 stores as a part of a restructuring plan, according to a Bloomberg report.
Payless may file for bankruptcy if it cannot reach a deal with creditors, according to Bloomberg. The chain enlisted the help of Guggenheim Partners in hopes of coming out of its sales slump.
Many retailers are grappling with the emergence of e-commerce giants like Amazon for sales, causing many brick-and-mortar stores like Payless to contemplate the future of business.
The shoe retailer employs more than 25,000 people across 4,400 stores in 30 countries, meaning any store closures could force employees out of a job.
Private equity firms Golden Gate Capital and Blum Capital purchased Payless in 2012.
While the information is not yet public, the retailer has yes to release an official statement on the matter.