WARD’S TO SHUT 9 MORE STORES
NEW YORK — Montgomery Ward said Friday it will close nine underperforming stores as part of its ongoing efforts to return to profitability.
The company filed for Chapter 11 bankruptcy protection in July 1997.
Ward’s net loss last year was $1.16 billion. The company has said it hopes to return to profitability in spring 1999.
Subject to bankruptcy court approval, the nine locations will begin going-out-of-business sales in June.
The stores to be closed are in Fort Smith, Ark.; Savannah, Ga.; Coeur D’Alene, Idaho; Carbondale, Ill.; Gaithersburg, Md.; New Bern, N.C., and Bloomington, Roseville and St. Paul, Minnesota.
“These nine locations were not meeting Ward’s performance criteria relative to the business plan and will be closed as a means of maintaining our focus on best-performing locations,” Roger Goddu, chief executive officer of Wards, said in a statement. “Our remaining 291 locations are responding well to our strategy, and we are particularly pleased with our progress in margin improvement and softline sales, which are showing double-digit increases year-to-date and meeting projections.”
The closings will affect 793 associates, Wards said. The company said it will attempt to reassign as many associates as possible to other stores.