SPIEGEL TO CLOSE ITS 17 HONEYBEE STORES
SPIEGEL TO CLOSE ITS 17 HONEYBEE STORES OAK BROOK, Ill., Jan. 6 /PRNewswire/ -- Spiegel, Inc.
(NASDAQ: SPGLA) announced today that it will close the 17-store retail division of its Honeybee subsidiary, effective Feb. 29. Honeybee, a retailer of upscale women's apparel, will continue to operate through specialty catalogs and the Spiegel major catalogs.
"The Honeybee stores have been hard hit by the recession, especially in the northeast where they are concentrated," said John J. Shea, vice chairman, president and chief executive officer of Spiegel, Inc. "Many of the current stores are in the downtown and smaller mall locations we inherited when we bought the company in 1988. The resources required to turn the stores' business around are out of proportion with heir potential in the current and anticipated retail environment." Eight of the Honeybee stores are located in the Philadelphia, New York and Washington, D.C. markets. Eleven of them are in older downtown and smaller mall locations. The financial impact of the store closings will be a pre-tax write- off of $9 million, provided for in the 1991 calendar year. Honeybee store division's net sales for 1991 were approximately $12 million. Honeybee store division headquarters in Huntingdon Valley, Pa., will begin closing immediately. The retail distribution center, also in Huntingdon Valley, will close over the next six months. The Honeybee catalog division will continue to operate out of Spiegel facilities in Chicago and Oak Brook, Ill., as it has since mid- 1991. "This has been a difficult decision," said John J. Shea, vice chairman, president and chief executive officer of Spiegel, Inc., "but in the current and anticipated economic and retail environment, our emphasis must be on those businesses that show significant growth potential." Spiegel, Inc. is the dominant mutli-channel specialty retailer marketing fashionable apparel and home funishings to discerning customers through catalogs and over 250 specialty retail stores. Spiegel's businesses include Eddie Bauer, Honeybee, Crayola Kids and For You from Spiegel. Spiegel acquired Honeybee in 1988. Spiegel's Class A non-voting common stock trades on the NASDAQ National Market System under the ticker sympbol: SPGLA. -0- 1/6/91 /CONTACT: Robert Longendyke (media), 708-218-7839, or Deborah Koopman (analysts), 708-218-7980, both of Spiegel, Inc./ (SPGLA) CO: Spiegel, Inc. ST: Pennsylvania, Illinois IN: REA SU:
KD -- NY070 -- 7044 01/06/92 16:37 EST
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|Date:||Jan 6, 1992|
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