The Spiegel Group, Downers Grove, IL, plans to close all of its Spiegel outlet and clearance stores and Newport News outlet stores.
They will stay open pending approval of the closure plan by the bankruptcy court. After that, stores would stay open until store-closing inventory sales are completed.
The company intends to close 12 Spiegel outlet stores, four Spiegel clearance stores and five Newport News outlet stores. They mainly provide a means to liquidate overstock and end-of-season merchandise. Inventory will continue moving through other clearance channels, including the Internet and catalogs. The company may consider reopening some of its stores to support the inventory liquidation needs of Spiegel Catalog and Newport News.
The company expects the closures and its modified inventory clearance process to improve operating income by about $11 million annually. It plans to appoint an independent liquidator to handle the closings.
