Mervyns Exiting Oregon and Washington
Hayward, Calif., Mervyns is leaving Oregon and Washington, closing its 19 stores in those states by February 2007. The chain said that most of the units are low-volume stores with relatively high operating costs. This most recently announced downsizing, which also includes a store in Salt Lake City, Utah, would leave the chain with 170 locations in its core markets of Arizona, California, Colorado, Idaho Nevada, New Mexico, Texas and Utah. The chain is upgrading its stores in those regions.
Kmart Reduces Full-Time Employee Roster
Troy, Mich., Kmart has outlined a new plan that reduces its full-time work force in favor of more part-timers at its 1,400 stores nationwide.
Some recently terminated full-time Kmart employees have been offered some of the part-time slots.
The new plan is entitled “Full-Time-Part-Time Workforce Adjustment Guidelines,” and is one of the latest cost-cutting steps taken by Kmart since it merged with Sears, Roebuck and Co. last year.
Eddie Bauer Identifies Accounting Errors
Redmond, Wash., Newly emerged from bankruptcy, Eddie Bauer Holdings has identified errors in its balance sheets and cash-flow statements. The company has issued a statement saying that the errors will be corrected, but that they will not have an effect on net cash flows.
The company also announced the departure of CFO Timothy McLaughlin, who has been replaced in the interim by David Taylor, effective immediately.
The financial understatements are related to lease accounting.