Ames calls it quits
August 14, 2002-- Home Textiles Today,
Rocky Hill, CT — Forty-two-year-old Ames Department Stores announced this morning that it will liquidate and close its 327 remaining stores within the next 10 weeks.
With $260 million in home textiles sales last year, Ames was among the Top 20 retailers for domestics — despite its bankruptcy filing in August 2001. It was the retailer's second trip into bankruptcy in a decade. The $2.7 billion chain was the last survivor among the northeastern regionals and one of only a few regionals left around the country.
"This was a wrenching decision, but the right course to take," said Ames chairman and ceo Joe Ettore. "Continued softness in sales, combined with tightening terms and slower shipments from our suppliers, have reduced our funds availability below critical levels. To ensure the greatest possible value for our various stakeholders — including our associates — Ames management has resolved to pursue an orderly liquidation of the company now, rather than continue along a path that would further diminish our resources and lead Ames to default on its lending agreements."
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