Payless ShoeSource closes in Cottage Grove

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Payless ShoeSource is no more, in both Cottage Grove and in nearly 400 locations across the country.

The footwear chain closed 387 locations in the U.S. after filing for Chapter 11 bankruptcy April 4.

Across Minnesota, locations in Moorhead, Elk River and Medford shuttered their doors.

The Payless stores in Woodbury, River Falls and Farmington will remain open.

An online statement regarding the closings said the eliminated stores were "underperforming." Payless spokesperson Meghan Spreer said there is no defined date for store closings, and that it will "vary depending on the liquidation process."

Spreer said employees in closing stores will have some options.

"We will make every effort to offer open positions at nearby stores to associates whose store is closing," she said. "If there is not an available opening, Payless associates will receive severance pay and, if eligible, benefits to help in their career transition."

The Cottage Grove Payless building at 8621 East Point Douglas Road is owned by Pennsylvania-based Kanawha Realty and Development.

Economic Development Director Christine Costello said as of Thursday it was not listed yet, but thinks it should be a good location for an incoming business.

"It helps with the other fast food retail around it and Target," she said. "It's just an instance where a company filed bankruptcy."

Metro Payless stores remaining open are several Twin Cities and the Mall of America locations, West St. Paul, Maplewood, Roseville, Richfield, Burnsville, Coon Rapids, Eden Prairie, Crystal, Minnetonka, Maple Grove and Apple Valley.

The company released a statement saying that they will use "the Chapter 11 process to implement a comprehensive path forward to meaningfully enhance our growth profile and profitability, positioning us to continue to thrive as a sustainable business in the face of the retail industry's radical, unprecedented transformation."