Jamesway in Pasadena to close by end of year, leaving 55 without jobs Sister store in Odenton also shutting, putting 52 out of work

November 03, 1995|By Edward Lee | Edward Lee,SUN STAFF

The Jamesway store off Mountain Road will close by the end of the year, leaving about 55 employees without jobs.

The retail discount store at 4211 Postal Court will shut after it sells all of its inventory, which is expected to be by the end of December.

The Pasadena store is among 90 Jamesway stores nationally that will be closed by the Secaucus, N.J.-based company, a Jamesway Corp. spokesman said.

"Jamesway certainly isn't happy about this," said the spokesman, who declined to give his name. "It certainly isn't a voluntary choice. The company would operate if it could."

County Councilman Thomas Redmond, a Democrat whose district includes the store, said the timing of the closing was unfortunate.

"Christmas is supposed to be a joyful time when you count your blessings, and these employees will be getting pink slips," he said. "It's going to be devastating."

The Jamesway in the Ridgeview Plaza Shopping Center in Odenton also will close, leaving 52 people out of work.

The company spokesman said Jamesway emerged from Chapter 11 bankruptcy in January with the hope that it could battle chains such as Wal-Mart and Marshall's for a piece of the retail market.

But weak sales, continuing operating losses and the loss of trade credit forced Jamesway officials to seek protection under Chapter 11 again last month, the spokesman said.

At the time of the bankruptcy filing, the company had more than 5,000 employees, the spokesman said.

The company is offering assistance to all employees who are looking for other jobs, he said.

The spokesman said that to ensure maximum profit for the company's creditors and shareholders, Chapter 11 bankruptcy law requires all 90 of the stores that are to be closed to remain open until they sell all of their merchandise.

Donald T. Spindel, an analyst for A. G. Edwards in St. Louis, said he was not surprised by the news. "I think it's symptomatic of the times," Mr. Spindel said. "What's been happening is the Wal-Marts of the world have continued to aggressively expand into new market areas and have grown so large that something has to give."

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