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Sherman Oaks, Calif. Discount shoe retailer Shoe Pavilion Inc. announced on Saturday that it filed for bankruptcy protection last week. As part of the filing, the chain sought court approval to close more than half of its 117 stores.
"There are approximately 43 stores which are clear money losers and will need to be closed in an expeditious manner," Shoe Pavilion said in papers filed Thursday in U.S. Bankruptcy Court in Woodland Hills, Calif.
An additional 28 outlets will close unless landlords make rent concessions, the company said.
Shoe Pavilion is asking the court to give approval to shut the 71 locations, reject the leases and hold store-closing sales. The company said its other 46 outlets were profitable and that it planned to keep them.
Store-closing sales will start as soon as the request is approved and probably be completed by the end of November, the company said. A court hearing is being held on Monday.
Inventory at the locations to be closed has an estimated value of $19.5 million.
In its bankruptcy filing Tuesday, Shoe Pavilion listed assets of $61 million and debts of about $27 million.
Shoe Pavilion has stores in Washington, Oregon, California, Arizona, Nevada, Texas and New Mexico and employs about 1,400 people.