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Payless ShoeSource prepares for SECOND bankruptcy that could come within weeks, plans store closures

Payless ShoeSource is preparing for its second bankruptcy, which could come as soon as within two weeks, a person familiar with the situation told CNBC.

As part of the bankruptcy process, Payless is looking for buyers for its real estate, which could include selling large blocks of stores in certain areas of the country. If it cannot find buyers, it may need to shutter the majority, if not all, of its North American stores, the person said.

The person cautioned that plans remain in flux and it is still possible that Payless could avoid a bankruptcy filing, potentially by finding a buyer for the entire company.