From staff and wire reports
October 29, 2008 08:14 am
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HUMMELS WHARF — A Value City store along Routes 11-15 in Monroe Township will be among 66 stores closed under a plan unveiled this week by store executives in a Chapter 11 bankruptcy filing.
The company blamed a slide in consumer spending and tougher credit markets for the closings.
Employees were told the Hummels Wharf store will close either at the end of November or by Dec. 31, according to a store worker, who asked that his name not be used.
The worker said employees were told Monday that the store would be shuttered Nov. 30 when the lease on the site runs out, unless the property’s owner agrees to allow it to remain open through the end of the year.
About 50 people are employed at the store, and many have worked there for 20 years or more, the employee said.
A manager at the local store referred questions to a corporate office, and calls to that number were not returned.
Documents filed with the U.S. Bankruptcy Court for the Southern District in New York said the economic downturn, higher gasoline prices and increasing unemployment have decimated the discount department store chain’s core market.
The company’s suppliers have also tightened credit terms, making it impossible to stock its shelves with enough new merchandise to remain profitable, according to the document.
The company has asked the court to approve an agreement with liquidator and financial consultant Tiger Capital to hold going-out-of-business sales. It has listed assets and liabilities of between $100 million and $500 million in its filing.
The company is also trying to obtain $40 million to conduct going-out-of-business sales at its stores.
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