Payless ShoeSource Canada Inc. says it will soon file for creditor protection in Canada and close all 2,500 of its North American stores this spring.
In a release the company says the closures are happening because "prior reorganization left the company ill-equipped for today’s retail environment."
They say they were left with too much debt and too large a store footprint.
This is the second time in two years the company has filed for bankruptcy.
Payless employs about 2,400 workers and owns 248 stores in Canada.