Payless just closed 900 stores - and now it's trying to make a comeback

Payless is trying to make a comeback after filing for bankruptcy earlier this year and closing about 900 stores.

The company revealed Thursday that it has emerged from its Chapter 11 restructuring after disposing of half its debt - about $435 million in total.

Its store count is now 3,500, down from 4,400 in February.

Payless also said Thursday that its CEO, Paul Jones, will retire. The company said it's searching for a replacement.

In a statement, Jones highlighted the fact that Payless is the first retailer to emerge from bankruptcy out of the many that have defaulted this year.

"In a year where so many major retail companies have filed for Chapter 11 restructurings, Payless is the first to successfully emerge as a stronger and healthier enterprise for the benefit of its customers, employees, suppliers, business partners, and lenders," Jones said.