White knight may save some Emporium stores, jobs.

Byline: Edward Russo The Register-Guard

Some Troutman's Emporium stores may have a future after all.

A Texas-based clothing chain with 48 outlets in 11 states on Wednesday said it wants to acquire 15 Emporium stores and keep them running under the Emporium name.

Eugene-based Emporium, with 34 stores, is seeking U.S. Bankruptcy Court permission to liquidate all assets to pay creditors. Firms that conduct going-out-of-business sales and outfits that acquire long-term leases from troubled companies are expected to bid on Emporium's assets in the next month.

Reginald Martin, chairman of The Dunlap Co. in Fort Worth, Texas, on Wednesday said he will make a bid to acquire 15 of the Emporiums. "We're not interested in liquidating stores, but in continuing stores," he said.

Martin declined to say which Emporiums he wants, or if any are in Lane County. Emporium's headquarters are on McVay Highway in Eugene; it has three stores in Eugene-Springfield and one apiece in Cottage Grove and Florence.

The arrival of a potential white knight is good news for at least some of Emporium's 1,000-plus employees.

Martin said Dunlap will make a joint offer on the stores with Hilco Merchants Resources of Northbrook, Ill. Hilco wants to sell Emporium's inventory in liquidation sales.

The Dunlap Co. would take over the stores after the sales in March and April, Martin said.

It remains to be seen if the Dunlap/Hilco offer will succeed. Bankruptcy Judge Albert Radcliffe of Eugene must be satisfied that it's the best deal for Emporium's creditors, who are owed a collective $30 million.

Martin said he's been interested in Emporium stores since 1999, when Emporium founder Dallas Troutman began looking in earnest for a buyer.

"I have personally been in many of the stores," Martin said. "I have a great deal of respect for the job that Dallas Troutman has done there."

Late last month, The Dunlap Co. made an offer that Emporium executives rejected as too low. Now, the upcoming Dunlap bid may be the best chance for any Emporium employees to keep jobs after shelves are cleared and the company dissolved. At this point, no other retailer has publicly expressed interest in acquiring the stores.

The Dunlap Co. operates stores under 15 names, including Dunlaps, McClurkans, and Gabriel's Stripling and Cox. Most are in Texas, Arkansas and Oklahoma, but some are as far east as Maine and as far west as Colorado.

Emporiums fit his company, Martin said. Both firms sell many of the same clothes and emphasize customer service, he said. Like Emporium, Dunlap offers alterations and gift wrapping.

Also like Emporium, Martin's firm focuses on smaller markets, where there's less competition from big-box discount retailers. Dunlaps are in such places as Lubbock, Texas, Muscle Shoals, Ala. and Liberal, Kan., while Emporium has stores in the small Oregon towns of John Day and La Grande, as well as Moscow, Idaho and Walla Walla, Wash.

The Dunlap Co., was founded in 1892 in Oklahoma territory. The company has grown on its own and by acquisitions, hence the 15 different names on its storefronts. It's last acquisition was Alabama-based Rogers, in 1994.

The next step in Emporium's bankruptcy takes place tomorrow, the bid submittal deadline for firms that want to acquire Emporium's inventory. Radcliffe is set to pick the top bid next Thursday.

It will take Radcliffe longer to determine which companies can acquire Emporium's leases and the right to occupy the stores.

Besides The Dunlap Co., others are interested, and shopping centers want to regain control of the spaces. Radcliffe is expected to approve or reject those deals on March 17.

The Dunlap Co.

Headquarters: Fort Worth, Texas

Established: 1892

Locations: 48 stores in Texas, Oklahoma, Arkansas, Virginia, Alabama, Kansas, New Mexico, Colorado , Arizona, Michigan, Maine. Company operates under 15 different names, including Dunlaps, Heironimus, McClurkans, the White House.

Merchandise: Brand-name clothing and cosmetics, including Estee Lauder, Clinique, Tommy Hilfiger, Ralph Lauren, Levis, Nautica, Polo.

Owners: Privately held, mostly by the Martin family.

Financials: Not disclosed.