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Clothing chain Dawahare's files for reorganizational protection

31
May '08
Citing the inability to successfully operate a total of 31 stores profitably in a down-turned economy, the century-old Dawahare's clothing chain has filed for a court-supervised reorganization plan which will involve both the closing of 9 of its existing retail units and the downsizing of its corporate support staff.

Harding Dawahare, the Company's president, explained the necessary action: "As a family-owned business with deep, deep roots within many communities, we are all saddened by having to take this step.

It's being done to try to preserve as many jobs as possible, in conjunction with keeping a viable retail presence in Kentucky.

Traditionally, our stores have offered exceptional, stylish merchandise for every member of the family, at consistently competitive prices carrying forward the business our Grandfather, Serur Frank Dawahare, began with a peddler's cart full of goods a century ago.

However, times have changed, dramatically, over the past l00 years. We find ourselves facing competition from outlets of numerous national chain merchandisers these chains can often purchase goods for less than we can, yet we both sell them for the same price.

As a result, in these economically trying times, although we remain competitive, our market shares have diminished, and many of our stores are no longer even marginally profitable".

He continued: "It is only after careful analysis of each and every one of our stores and the corporate staff which supports them that we decided to seek reorganization protection and to close 9 units with the plan that other units remaining open will be profitable, and that we, as a company, will survive."


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