BROOKVILLE, Ohio(WDTN) – Payless’ Chapter 11 filing means trucks will soon stop pulling out of its Brookville facility. More than 200 employees will start receiving lay off notices May 1.
Payless originally filed for bankruptcy in 2017, leaving the Brookville warehouse as the company’s only distribution site. That same year, city documents show Brookville officials agreed to spend more than $944,000 to build a water tower at the request of Payless. According to the documents, Payless informed the city that because of it’s bankruptcy filing, it had the legal right to break its lease on the city’s property if its concerns with water supply were not met.
Area resident James Todd, told 2 News he felt sadden by the announcement of layoffs.
“With the economy getting better, hopefully these people will be able to get out and find different jobs after it closes. I hope that they don’t have to travel too far to be able to support their families and find good jobs,” Todd said.
The distribution center is one of the area’s largest employers. Payless employees at retail stores can also expect to lose their jobs.
A statement from the company reads “The loss of employment is expected to be permanent, and employees will not have any bumping rights with respect to the Company.”
2 News reached out to city leaders Friday but no one could be reached for comment on the issue. No word yet on what will occupy the 800,000-square foot facility after Payless shuts it down.