The Associated Press reports that Payless’ news makes the company the latest retailer to succumb to increasing competition from online rivals like Amazon.
The Topeka, Kansas-based retailer said it's immediately closing nearly 400 stores as part of the reorganization. Payless has more than 4,400 stores in more than 30 countries and was founded in 1956.
"This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify," Payless CEO Paul Jones said in a statement.
The news comes as electronics and appliance retailer, hhgregg announced it was closing all stores, including 12 in metro Atlanta. Macy's is also said to be laying off more than 130 people at a customer fulfillment center in Tucker.