Payless prepares to file for bankruptcy as early as next week, according to a Bloomberg report on Wednesday.
The retailer has over 4,000 stores in 30 countries, and employs around 22,000 people, jeopardizing thousands of jobs.
According to the Bloomberg report, Payless is planning to close 400-500 stores as it reorganizes operations, as opposed to the previously rumored 1,000 store closures. The number of store closures may still change.
After private equity firms Golden Gate Capital and Blum Capital Partners bought the company in 2012 as a part of the breakup of the publicly traded Collective Brands Inc., the retailer continues on its downward slope.