NEW YORK - August 24, 2011 - The parent company of Payless and Stride Rite shoe stores, Collective Brands, Inc., said Wednesday that it plans to close 475 stores and has engaged a firm to help it explore its options.

The company posted a second-quarter loss of $35 million Wednesday, including $83.6 million in one-time charges that mainly reflect the declining value of its stores and of Stride Rite's trade name.

The company's shares soared more than 40% in after-hours trading after the announcement.

Its board adopted a short-duration shareholder rights plan, a common tool for fending off unsolicited or hostile offers while such a review is underway. The "poison pill" will kick in if any one person or group buys more than 15% of Collective Brands outstanding common stock.

Its largest shareholder is PrimeCap Management Co., with just over 10% of outstanding shares, according to FactSet.

The company said its board and executives are conducting "a review of strategic and financial alternatives to further enhance shareholder value", and it hired Perella Weinberg Partners and Kurt Salmon as advisors. The language is typical for companies looking to put themselves up for sale, but the company said it couldn't predict the move's consequences.

Collective Brands plans to close stores with low sales volume in the U.S., Canada and Puerto Rico. More than 300 stores will be shuttered by the end of this year, including about 275 Payless and 75 Stride Ride children's stores.