|
|
|
Ames Aims for Chapter 11
|
Business New Haven
9/4/2001
By: BNH
|
ROCKY HILL - Ames Department Stores (NASDAQ: AMES) on August 20 applied for Chapter 11 bankruptcy protection for the second time in 11 years, becoming the latest U.S. retailer to succumb to the economic downturn and heavy debt levels.
The company, which earlier in August had announced plans to lay off about 2,000 people and close 47 stores, said its remaining 400 stores will remain open as it reorganizes.
Ames, which is burdened by debt from its March 1999 acquisition of the Hills Stores Co. chain, joins other retailers that were forced to file for bankruptcy and liquidate assets, including discounter Bradlees Inc., Montgomery Ward & Co. and the Caldor chain.
In 1990, Ames filed for bankruptcy after acquiring the Zayre Corp. chain. The company emerged from Chapter 11 in 1992. The chain, founded in 1958, sells housewares, apparel, electronics and pet supplies, among other things.
Ames customers, who typically have annual income of $30,000 and under, have been hit hard by job cuts in the stalled U.S. economy and have cut back on purchases at the discounters' stores.
|
Go FirstGo PreviousGo
NextGo LastGo
to Index
|
|
