BIDDEFORD — Attention, Payless shoppers: The Biddeford location of the nation’s largest specialty footwear retailer will soon close, as its parent company has filed for Chapter 11 bankruptcy protection.

The Topeka-Kansas-based retailer announced Tuesday that it will be closing several hundred underperforming store locations across the country, including four in Maine, as part of a massive reorganization.

The chain, known for its popular buy-one-get-one sales events, was founded in 1956 and has over 4,400 store locations in more than 30 countries.

The Biddeford store, located in The Shops at Biddeford Crossing, will close as the retailer attempts to “optimize its store footprint,” it said in a release.

Also closing are the stores at the Maine Coast Mall in Ellsworth, Aroostook Centre in Presque Isle and the Broadway Shopping Center in Bangor.

According its website, the company plans to decrease its debt by 50 percent by closing 400 of its underperforming stores nationwide, while increasing expansion of its international sales efforts.

The company initially stated closures would be effective immediately, but a bankruptcy hearing on Wednesday gave Payless authorization to continue providing employee wages and benefits, on an interim basis, without interruption.

“As a result of today’s hearing, all Payless stores and Payless.com will be able to continue offering without interruption the wide range of affordably priced family footwear for which they are relied on by families across America,” the company announced Wednesday.

The company also said up to $385 million has been made available on part of its lenders to keep its stores running through the reorganization — $305 million of which made available through asset-based lending — as it also works to line up funds and lower its interest payments.

The company said Wednesday that $245 million of the $305 million would be coming from a lender group led by Wells Fargo.

Paul Jones, the company’s chief executive officer, said on the Payless website that competition from other discount brands and websites like Amazon and Zappos have contributed to Payless market downfall.

“This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” Jones said. “We will build a stronger Payless for our customers, vendors and suppliers, associates, business partners and other stakeholders through this process.” 

Jones said through the reorganization that Payless will, “remain the go-to shoe store for customers in America and around the globe.”

Customers continued to pour into the Biddeford store, located off Route 111 at 307 Mariner Way, on Thursday as an “All Sales Final” sign greeted them at the doorway.

The company is encouraging Biddeford shoppers to take their business to the stores in Westbrook or the Maine Mall in South Portland, or to shop online at the company’s website.

Payless isn’t the only area chain to suffer from slow business in recent months.

In September, the Olive Garden also located at The Shops at Biddeford Crossing suddenly shuttered its doors, coming as a surprise to both customers and employees. 

The Italian-inspired restaurant’s parent company, Orlando-based Darden Restaurants, Inc., at the time offered no explanation as to why. 

And in August, American grill-themed restaurant Ruby Tuesday, located just off Exit 32 on the Maine Turnpike, and about a mile from Biddeford Crossing, closed its doors without warning, citing a chain-wide streamlining effort due to declining sales.

Daniel Stevenson, Biddeford’s director of economic development, said Thursday he’s sad to see another business leave the city, but stressed The Shops at Biddeford Crossing plaza is still performing well under pressure.

“It’s unfortunate that (Payless is) experiencing this, which we’ve seen happening in the retail sector. It’s unfortunately not new,” Stevenson said. “But with respect to the Biddeford Crossing center, that’s a healthy center and the center is still doing really well.”

It is not known exactly when the Biddeford store will shutter its doors, or to where, if at all, the shop’s employees will be transferred.

“It’s always hard for us to hear when any businesses close down in our community, especially when they happen quickly because it always affects workers and their families,” Stevenson said. “What we would hope is that some of the workers can be offered positions in other stores. Perhaps the company will work with its workers for relocation efforts.”

— Staff Writer Alan Bennett can be contacted at 282-1535, ext. 329 or [email protected].