Ames to Close Another 47 Stores
ROCKY HILL, Conn., Aug 16, 2001 (AP Online via COMTEX) -- Ames
Department Stores Inc., seeing little light at the end of the economic tunnel,
said Thursday it would close another 47 stores in 10 states by the end of
October. About 2,000 employees will be affected, the company said.
"We've continued to see a softening economy in the last several months and
don't anticipate much improvement in the short term," Ames Chairman
Joseph Ettore said in a news release.
"In this tough economic climate, we feel that it is in the company's best
interest to put our efforts into our viable core business which represents just
over 400 store locations," he said.
The bulk of the closings are in Ohio (15) and Pennsylvania (12). Where
possible, affected workers will be offered jobs in other Ames stores, Ames
said.
In May, Ames reported a first-quarter net loss of $27.7 million, or 94 cents
per share, compared with a loss of $29.1 million, or 99 cents per share, in the
same quarter last year.
Ames, which reports its second-quarter results Aug. 23, said sales for the
first quarter were off 4.5 percent from the year-ago period.
Earlier this month, Ames said its July sales were down nearly 9 percent from
the same period last year.
In November, Ames announced it was closing 32 stores, including 31 of the
stores it acquired from Hills Stores Co. in December 1998.
In afternoon trading on the Nasdaq Stock Market, Ames shares fell 8 cents to
70 cents, down about 10.5 percent.
Copyright 2001 Associated Press, All rights reserved
APO Priority=r APO Category=1310 KEYWORD: ROCKY HILL, Conn.
SUBJECT CODE: 1310
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