Payless Files for Bankruptcy, Closing North American Stores

A worker puts the finishing touches on a sign unveiling the company's new look at a Payless Shoesource store at a mall in Independence, Mo., on May 18, 2006. Charlie Riedel/AP

NEW YORK—Payless ShoeSource has filed for Chapter 11 bankruptcy protection and is shuttering its remaining stores in North America.

The filing on Monday came a day after the shoe chain began holding going-out-of-business sales at its North American stores.