NEW YORK — Shoe chain Payless ShoeSource has filed for Chapter 11 bankruptcy protection, becoming the latest retailer to succumb to increasing competition from online rivals like Amazon.

The Topeka, Kansas-based retailer said Tuesday that it will be immediately closing nearly 400 stores as part of the reorganization. It has over 4,400 stores in more than 30 countries and was founded in 1956.

Payless plans to reduce its debt by almost 50 per cent, 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.

"This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,'' said said Payless CEO Paul Jones in a statement.