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Whitehall Closing 77 Units

CHICAGO-In an attempt to pull itself out of the red, Whitehall is closing 77 stores, bringing in a new CEO and considering a buyout.

By Dana Dubriwny | Updated on November 02, 2005

CHICAGO-Following months of setbacks, including a disappointing second quarter, locally based Whitehall Jewellers Inc. is trying to regain its footing by closing 77 underperforming stores. Additionally, the company has hired a new CEO, and is reviewing a buyout proposal.

According to the company, the soon-to-be-shuttered stores posted losses of $5.1 million for the trailing 12 months ended July 31, 2005. Whitehall plans to run inventory-liquidation sales at these stores to generate cash flow, which is expected to generate more than $14 million. Daniel Levy, director and interim chief executive officer, says the sale will give the company’s new CEO, Robert L. Baumgardner, positive news to report moving forward.

“We believe that the Company’s decision to close 77 unprofitable operations will provide Bob and his team a strong foundation of stores with attractive merchandise assortments,” Levy said in a statement. “This trimmed down store platform should provide a strong base for Bob to begin his tenure.”

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