By  on June 2, 2008

ATLANTA—Dawahare’s, a century-old, family-owned apparel chain, has filed for Chapter 11 and will close nearly a third of its 31 stores and downsize its corporate staff.

The Lexington, Ky.-based company cited its inability to successfully operate its stores profitably in a down-turned economy as its reason to file for a court-supervised reorganization plan on late Friday afternoon. Dawahare’s will close nine stores, all of them under-performing.

“Today we find ourselves facing competition from outlets of numerous national chain merchandisers,” said Harding Dawahare, president. “These chains can often purchase goods for less than we can, yet we both sell them for the same price. As a result, in these economically trying times, although we remain competitive, our markets have diminished and many of our stores are no longer even marginally profitable.”

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