Payless could close 1,000 stores

Payless may be the latest victim of the decline of malls across America.

The discount shoe retailer could close as many as 1,000 stores as part of a debt restructuring plan, sources told Bloomberg. Currently, Payless has about 4,400 locations worldwide, including 3,600 in North America.

If Payless can't reach a deal with creditors the retailer may consider filing for bankruptcy, Bloomberg's Jodi Xu Klein and Lauren Coleman-Lochner reported Friday.

In January, Reuters reported that Payless was working with attorneys to restructure debt worth roughly $655 million. Later in the month, Payless laid off 165 associates, including 110 employees at the Topeka corporate office, The Topeka-Capital Journal reported.

Payless, like many other retailers, is hurting from a decline in foot traffic to shopping malls.

Earlier in January, The Limited, another apparel brand primarily based in malls, shut down all 250 of its stores and laid off 4,000 workers. Mall staples Sears and Macy's have also announced mass closures this year, with Sears planning to close 150 namesake stores and Kmart stores in 2017 and Macy's planning to shutter another 100 stores.

RELATED: Notable stores that no longer exist like they used to:

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Notable stores that no longer exist like they used to
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Notable stores that no longer exist like they used to
Signage is displayed at a Filene's Basement store in Chicago, Illinois, U.S., on Wednesday, Nov. 16, 2011. Bankrupt discount-clothing retailer Syms Corp. and its Filene's Basement LLC unit won court approval to conduct going-out-of-business sales to liquidate their inventory. Photographer: Tim Boyle/Bloomberg via Getty Images
A Circuit City store is seen in Dallas, Texas in this file photo taken June 19, 2008. U.S. electronics retail chain, Circuit City is considering closing at least 150 stores and cutting jobs, the Wall Street Journal said on October 20, 2008, citing people familiar with the company. REUTERS/Jessica Rinaldi/Files (UNITED STATES)
NORRIDGE, IL - JANUARY 30: KB Toys signage is visible atop the entranced to its store January 30, 2004 in Norridge, Illinois. Pittsfield, Massachusetts-based KB Toys says it will close 375 stores nationwide including this Norridge, Illinois store. (Photo by Tim Boyle/Getty Images)
ALEXANDRIA, VA - AUG 14: An Ames Department Store stands August 14, 2002 in Alexandria, Virginia. Ames Chairman and CEO Joseph R. Ettore in announced that the discount chain would close all 327 store locations leaving 22,000 unemployed. (Photo by Mike Theiler/Getty Images)
The Blockbuster movie rental store is open for business in the Denver suburb of Broomfield, Colorado April 6, 2011. Dish Network Corp won Blockbuster Inc in a bankruptcy auction for about $320 million, boosting the satellite TV provider's online features and marketing reach. Dish, the second-largest U.S. satellite TV company after DirecTV, trumped at least three other bidders, including activist investor Carl Icahn, for the one-time leader in video rentals. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS)
A Sports Authority store is shown in Encinitas, California on March 2, 2016. Sports Authority Inc. said it had filed for Chapter 11 bankruptcy protection and hired liquidators to begin closing up to 200 of its 463 locations. REUTERS/Mike Blake
Customers walk into the Hollywood Video store that is scheduled for closing in Springville, Utah, U.S., on Wednesday, May 12, 2010. Movie Gallery Inc., the owner of Hollywood Video stores, plans to shutter operations and liquidate assets after filing for bankruptcy for the second time since 2007. Photographer: George Frey/Bloomberg via Getty Images
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NOW WATCH: Here's why malls across the US are dying

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