Lowes Store Closings
August 16, 2011 by staff
The two stores closed Sunday night, leaving 195 employees jobless, the company said Monday. Katie Cody spokesman said two nearby shops were among seven nationwide to close Sunday night due to disappointing earnings. The other stores are located in Alaska, Connecticut, Georgia, Minnesota and New York.
“Unfortunately, despite the hard work of employees of the store … we have not seen the profitability of the stores, and had to close,” he said.
Leo Nelson, president of the Elgin Area Chamber of Commerce, said he had no indication of the store before it closes, but said the lack of warning; it is not uncommon when it comes to large corporations.
“It’sa great loss of a retail store in circulation,” he said.
He added that the closure could have a significant impact on city revenues, sales tax and said the camera will do everything possible to help get a new business in the building.
Colleen Lavery, chief financial officer of Elgin, did not immediately have figures on sales taxes to the store, but said he has contacted the State requesting the information so you can determine how much the city will have a stroke.
Rick Kozal, assistant director of the city of Elgin, said it would be easy for a business to fill the premises of Lowe.
“Finding any shop to open in this environment is difficult, especially with action in the stock market,” he said.
However, he added, he does not believe the closure is a reflection of the Elgin market retail, and instead a symptom of problems throughout the company. He said pointing to a new Walmart is under construction at Randall and Bowes roads as evidence of healthy market in the city.
The location of Lowe Elgin, at 629 S. Randall Road, opened in January 2007 and 85 employees in its closure. The Schaumburg store, located at 101 N. Barrington Road, opened in January 2006 and employs 110 people.
“Lowe Lost sales estimates from stores around the beginning,” said Cody. The gains were “well below projections.”
Employees were told Sunday night that were out of a job and shops are closed immediately, said Cody. The company offered compensation of 60 days with a benefits package.
“It’s a very nice store, good people there and I feel bad for people who will lose their jobs,” said Nelson. “It’s just an unfortunate time in our economy to see these things.”
The store later Monday, company employees were carrying flowers and a security guard posted at the door. Cars continually stopped in the store, slowed to read the signs announcing the closing, and then pulled away.
Rebenstorf Elgin Sue was one of surprise when he arrived and a security guard told the closing.
“I’m sorry because I like the store,” he said. “It’s clean and you can usually find everything they want.”
Rebenstorf said he would go to one of the hardware stores on Randall Road. There is a Menard is just half a mile south at 825 S. Randall Road and a Home Depot in 955 N. Randall Road.
Lowes is directing customers to its stores in Lake in the Hills, 300 N. Randall Road, San Carlos, and 955 S. Randall Road.
The company has no plans to close more of its 1750 stores nationwide, including 20 that still have in the Chicago area and Northwest Indiana, according to Cody.
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