Business Report: Payless Files for Bankruptcy

Another retailer has filed for bankruptcy as the retail sector continues to face strong competition from online sellers. Payless Shoesource has filed for Chapter 11 bankruptcy protection, the latest retailer to feel the pressure from increasing competition from rivals. Payless plans to reduce its debt by almost 50%, lowering how much it pays is interest. The retailer says some of its lenders have agreed to make up to $385 million available to keep the stores open. Payless currently has over 4,400 stores in more than 30 countries. Shoppers have been shifting their habits, buying online or at discount stores a shift that has hurt traditional retailers, even low price stores such as Payless.