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Payless closing Brookhaven location

Payless ShoeSource is closing hundreds of stores nationwide, including its location in Brookhaven.

The store on Brookway Boulevard is one of a handful in the state that will close. The company is also closing stores in McComb, Hattiesburg, Ridgeland, Jackson and Clarksdale.

The company filed for Chapter 11 bankruptcy Tuesday with less than $1 billion in assets and $10 billion in liabilities. It released the list of store closures Wednesday.

Payless has been in talks with lenders over a restructuring plan that included closing as many as 1,000 stores, according to media reports.

The company has more than 4,000 stores and employs more than 20,000 people.

Payless plans to reduce its debt by almost 50 percent, lower how much it pays in interest and line up funds. The company says some of its lenders have agreed make available up to $385 million to keep the stores running.