Liberty House to close
5 shops to cut costs

Star-Bulletin staff

Liberty House plans to close five resort and specialty shops in the next few weeks, as part of its bankruptcy reorganization plan to shed "marginal" assets and focus on more profitable department stores.

The move is part of a plan, previously announced in bankruptcy court, to close 11 of its 28 resort and specialty shops.

A company spokesman today said 99 employees will be affected, to be offered positions at other stores or severence pay.

"We're trying to increase productivity while cutting costs," said Barbara Tunno, vice president of marketing.

Liberty House, which has closed three of the 11 shops since the beginning of the year, said it plans to close five more in the next three weeks. They are Elements at Aloha Tower Marketplace; Home Outlet and The Rack at Maui Marketplace; Collections at the Kauai Marriott; and Home Outlet at Ward Gateway Center. The new round of closings will affect 46 employees, company officials said.

Closed in January was a resort shop at the Embassy Suites Kaanapali and in February at the Westin Maui. Last week, a Liz Claiborne store was closed at Pearlridge Center.

Elements at Aloha Tower Marketplace is to close its doors on Saturday. Home Outlet and The Rack on Maui are to close on Sunday. Collections on Kauai is to close April 30. And Home Outlet at Ward Gateway Center is to be closed May 5.

The company has not yet decided when it will close the remaining three shops, at the Sheraton Waikiki, Kaluakoi Resort and Lahaina Center.

Collectively, the 11 targeted stores contributed a "marginal" $11.3 million to company revenues last year, according to court filings.

"We will focus our efforts in 1998 on our department stores and our most profitable specialty stores and seek to sell non-core stores where feasible," the company told the bankruptcy court.

Liberty House, which has 11 department stores, filed for Chapter 11 reorganization bankruptcy on March 19.

The store closings are part of restructuring plans that also include stopping direct mail catalogs to Japan, reduced advertising, reduced inventory, layoffs and job cuts, and elimination of employee 401(k) retirement plans.