HESS'S TO SELL 5 TIDEWATER STORES, CLOSE 1

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, January 6, 1993                   TAG: 9301060073
SECTION: BUSINESS                    PAGE: A5   EDITION: METRO   
SOURCE: Associated Press
DATELINE:                                 LENGTH: Short
HESS'S TO SELL 5 TIDEWATER STORES, CLOSE 1
Hess's, an Allentown, Pa., department store chain operating a store at New River Valley Mall, said it is selling five of its Hampton Roads department stores to a Tennessee-based chain and will close its sixth Tidewater store, in Newport News.
Proffitt's Inc., a department store chain that sells upscale fashions and home furnishings, is buying Hess's stores in Hampton, Newport News, Chesapeake and Virginia Beach. Terms were not disclosed.
Hess's spokesman Wayne Holben declined Monday to say how many employees would be affected. The move is part of an overall restructuring of the Hess's chain, which has not made a profit in two years. Hess's officials have blamed the problem on rapid expansion - 30 new stores in four years - and on the retail recession.
"By selling and closing smaller, unprofitable stores and exiting markets where Hess's is not the dominant retailer, we will be better positioned to aggressively pursue our core markets for future growth," said Robert O'Connell, chief operating officer.
Proffitt's, a publicly held company based in Alcoa, Tenn., owns 15 stores in Tennessee, North Carolina and Georgia and plans to own 24 stores by October. Proffitt's 1991 annual report lists net income of $3 million on sales of $104.9 million. - Associated Press

by Bhavesh Jinadra by CNB