Saks Inc provides updates on two California stores
09 May '06
3 min read
Retailer Saks Incorporated provided an update on two California Saks Fifth Avenue stores previously slated for closure.
In October 2004, the Company announced its intention to close its 47,000 square foot Palos Verdes store and its 100,000 square foot Mission Viejo location once satisfactory arrangements could be negotiated to divest these locations. Both locations are leased.
Palos Verdes
The Palos Verdes store, located in The Avenue of the Peninsula, is now scheduled to close on May 13, 2006. Saks Fifth Avenue employs approximately 60 associates in this store.
These associates will be offered transfer opportunities to other area locations or will receive appropriate severance packages.
"We are very appreciative of the dedicated team of Palos Verdes associates, many of whom have served our customers since the store opened in 1999," noted Steve Sadove, Chief Executive Officer of Saks Incorporated.
Sadove further noted, "This planned closing is consistent with our strategy of focusing our capital, inventory, and other resources on our most productive units.
We remain committed to our Palos Verdes customers and hope to continue serving them through our other Los Angeles area locations and through saks.com."
In conjunction with the Palos Verdes store closing, the Company will record charges primarily related to the lease termination, inventory write down, and severance costs.
These charges will be recorded in the second fiscal quarter of 2006 and are expected to total approximately $2 million on a pre-tax basis.
marketing@alchempro.com
