CALDOR PLAN WILL CLOSE 12 UNITS
NEW YORK — Continuing the consolidation pattern among regional discounters, Caldor Corp. said Monday it will close 12 underperforming stores this summer, including all its units in Syracuse and Rochester, N.Y., as part of its reorganization under Chapter 11.
The discounter also plans to expand its presence in Philadelphia, New York and Washington with the opening of six units between April and August.
At the stores being closed, between 1,200 and 1,800 full- and part-time employees will be laid off, a spokeswoman said. Some may be offered jobs at other Caldor units, she added.
The closings are subject to bankruptcy court approval.
Caldor’s move follows cutbacks at Ames Department Stores, which is closing 17 units this month, and Bradlees, which said in late February it plans to close 12 units by May.
The Caldor closings will hit five stores in Rochester and three in Syracuse, markets that Caldor entered in 1993 and 1994, respectively. Two Massachusetts units and one each on New York’s Long Island and in Connecticut also will close. The spokeswoman declined to say whether the stores were profitable.
Caldor expects to take an unspecified charge against earnings to cover the closings, she added. Caldor, the fourth-largest discount chain in the U.S., expects to realize “significant savings” by shutting the 12 units, Don E. Clarke, chief executive officer, said in a statement.
“We determined we should proceed with store openings that offer attractive market opportunities,” he said.
The new Caldor stores, which average 119,000 square feet, are in District Heights and Silver Spring, Md.; Glen Oaks and Westbury, N.Y.; Hunting Park, Pa., and Edgewater, N.J.
Caldor also canceled plans to open a store in New Bedford, Mass., that had been scheduled to open this year.
The chain, which filed bankruptcy last September, currently operates 166 stores and has an annual volume of about $2.8 billion.