THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, February 3, 1996 TAG: 9602030336
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: Short : 48 lines
Merry-Go-Round Enterprises Inc., an apparel retailer with three stores in South Hampton Roads, is giving up.
The retailer, which has been fighting bankruptcy for two years, said Friday it is going out of business and will liquidate its assets and lay off employees.
``Over the next several months, the company will wind down business operations . . . in an orderly fashion,'' Merry-Go-Round said in a statement.
Merry-Go-Round said it will sell its headquarters in Joppa, Md. More than 500 stores, mostly located in shopping malls, will be sold or closed. The retailer did not say how many would close or mention specific locations.
In addition to its Merry-Go-Round chain, the company operates stores under the Cignal and Dejaiz/Attivo names.
Managers of local Merry-Go-Round stores contacted Friday were either unaware of the announcement or unwilling to discuss it. In South Hampton Roads, Merry-Go-Round operates stores in Lynnhaven, Greenbrier and Military Circle malls. It also has a store in Coliseum Mall in Hampton.
``I have no idea,'' one manager said. ``They haven't discussed it with us.''
Founded in 1968, the company catered to the young and chic, offering everything from the shortest, sassiest miniskirts to the baggiest, widest jeans.
But Merry-Go-Round, like other apparel retailers, was hit hard by a slump in the clothing industry and increasing competition in the 1990s. The troubles forced the company to close several outlets.
The company filed for bankruptcy protection in January 1994. Since then, Merry-Go-Round's leadership has changed several times.
On Friday, company officials said they weren't able to get financing to keep the company running. They also said Merry-Go-Round didn't have support from its clothing suppliers. MEMO: Bloomberg Business News contributed to this report.
by CNB