LIGHTS OUT AT HOMELIFE STRUGGLING FURNITURE CHAIN CLOSES 133 STORES.

Byline: Dan Anderson  Business Editor

HomeLife pulled the welcome mat out from in front of its 133 furniture stores Wednesday, an abrupt end to a company that struggled from the outset.

The closings, including a half-dozen stores in and around Los Angeles, come amid a retail shakeout that has seen falling profits and the demise of big-name competitors Helig-Meyers and Montgomery Ward.

The Illinois-based company said it hopes the closures will be temporary and that executives are negotiating with potential lenders. But the statement notes, ``We currently do not have firm dates established for business reopening.''

HomeLife was the nation's eighth-largest furniture store with sales of $680 million in 2000, according to the Furniture Today trade paper.

Sears started HomeLife in 1989 as a generally free-standing furniture store. The concept was good, but the chain was neglected, said Kurt Barnard, president of Barnard's Retail Report.

``It was a money loser for Sears for a variety of reasons, (among them) too few stores scattered over too wide an area of the U.S. It was very difficult to operate efficiently that way.''

The chain was sold to a private investment firm in 1998, though Sears maintained a 19 percent interest in the furniture stores and housed 14 HomeLifes inside its department stores.

Phones at the company's suburban Chicago headquarters went unanswered Wednesday.

The message left on the phone at the Glendale store was, ``The store is now closed and will not be reopening. Unfortunately, there is no further information available at this time.''

Similar greetings were left in Northridge, Thousand Oaks, Woodland Hills, West Los Angeles and Pasadena.

In Thousand Oaks, yellow caution tape cordoned off the HomeLife area from the rest of the Sears store. An employee, who did not want to be named, said staffers were told early Wednesday that HomeLife was out of business and were given a phone number to pass along to customers.

Customer Elitres Freelon of Canoga Park visited the Northridge HomeLife store Wednesday to cancel her order, only to discover a note on the locked doors.

``I bought $4,000 worth of furniture that should have been delivered Monday and they've been lying to us about why the furniture hasn't been delivered,'' she said. ``They have a very nice selection ... I'm just glad they don't have my money.''

HomeLife's financial troubles are seen across the retail sector.

``A lot of economists have said consumers are the ones propping up the economy, which is hindered by the high-tech sector,'' said Nate Franke, a partner in Deloitte & Touche's Costa Mesa consumer business practice office. ``I think what you're seeing with the announcements by some retailers now - the last six months of news on layoffs and stock market declines - consumers are starting to keep their wallets in their pockets.''

Jan Drummond, a spokeswoman at Sears headquarters, would not say whether the department store chain was given notice of HomeLife's closings, but added, ``Its been clear for some time that they've been having difficulty.''

Absent a fresh round of financing, Drummond said, Sears and HomeLife are working to determine how to handle credits, refunds, warranties and service contracts.

HomeLife customers who had purchased furniture but were waiting on deliveries will have their money returned, the company said. Credits will be issued on undelivered orders paid by credit cards; cash purchases will be refunded by check.

Refunds should be received by Aug. 30. Customers should call [phone] after that time for additional details. Information on extended warranties is not yet available.

Staff Writers Evan Pondel and Cecilia Chan contributed to this report.

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Photo:

(color) June Merrifield peeks through the window of the closed HomeLife furniture store on Victory Boulevard in Canoga Park.

Tina Burch/Staff Photographer