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Payless Files For Voluntary Chapter 11 Protection In U.S.

Payless ShoeSource announced Tuesday that the Company and its North American subsidiaries have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Missouri.

Certain Payless Canadian subsidiaries will also be seeking protection pursuant to the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice.

Payless intends to use these proceedings to facilitate a wind-down of its approximately 2,500 store locations in North America and its e-commerce operations.

The Company expects that Payless store closings will begin at the end of March and many stores will remain open through the end of May, as it conducts liquidation sales in the U.S. and Canada. Payless has also wound down its e-commerce operations.

Payless' retail operations outside of North America, including its company-owned stores in Latin America, are separate legal entities and are not included in the Chapter 11 or CCAA filings.

Payless' 420 stores across 20 countries in Latin America, its stores in the U.S. Virgin Islands, Guam and Saipan, and its 370 international franchisee stores in 16 countries across the Middle East, India, Indonesia, Indochina, Philippines and Africa, will continue operating business as usual in every respect.

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