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

DATE: FRIDAY, July 13, 1990                   TAG: 9007130275
SECTION: BUSINESS                    PAGE: A7   EDITION: METRO 
SOURCE: DEBORAH EVANS BUSINESS WRITER
DATELINE:                                 LENGTH: Short

SEARS TO SELL CATALOG OUTLETS TO CUT COSTS

In a cost-cutting measure, the Chicago-based retailer said it hopes to sell the centers to their managers, who would continue the operations as franchise-type stores to sell Sears merchandise.

Sears spokeswoman Kathy Gucfa said managers of these centers, which typically employ fewer than 10 people each, will be given until Aug. 1 to decide if they want to buy the stores.

Stores affected by the sales are in Rocky Mount, Wytheville, Pulaski, Richland, Pearisburg, Hillsville and Covington.

If current managers opt not to buy the operations, Sears will offer them to others, the company said.

Gucfa said Sears has about 2,000 independent catalog sales offices nationwide and they fare better when they are locally owned and operated.

Sears also is in a major restructuring, Gucfa said, and hopes that selling the catalog centers will mean a savings in payroll and distribution costs. She would not reveal the amount of the anticipated savings.

During the conversion to private ownership, managers and other full-time employees of the company-owned centers will be offered salary and medical benefit extensions, Gucfa said. Because most of these centers are in small towns, employees will not be able to transfer to other Sears facilities.

Whether employees will be re-hired after the conversion will be left up to the new owners, Gucfa said.