ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, July 30, 1996 TAG: 9607300085
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: CHICAGO
SOURCE: Associated Press
MEMO: ***CORRECTION***
Published correction ran on July 31.
Clarification
A Ben Franklin Store that has been in business about 50 years at
Pembroke in Giles County will not be affected by the national company's
filing of bankruptcy reorganization. It was reported otherwise in
Tuesday's Business section.
JoAnn Atkins, owner of the store, said it is an independent franchise
operation. Atkins pays a franchise fee to use the company name and order
merchandise through the national company.
BEN FRANKLIN'S NAME may be retired from the retail scene after filing Chapter 11 in court.
Ben Franklin Retail Stores Inc., where the late Sam Walton honed his merchandising skills, has sought bankruptcy court protection from its creditors - becoming the latest victim of competition from superstores such as Wal-Mart.
The chain, which shifted eight years ago from a five-and-dime to arts and crafts supplies, cited a fiercely competitive retail environment when it filed for Chapter 11 protection late Friday in Chicago. The filing allows the Carol Stream, Ill., company to postpone payment of its debts under the court's supervision while it tries to reorganize its finances.
The company has about 930 stores in 49 states. David Brainard, a vice president, said Ben Franklin will try to sell the 33 company-owned stores and will close those it can't sell. It wasn't immediately clear how the bulk of the chain's stores, which are franchise-owned, would be affected.
A spokeswoman for the Ben Franklin Store in Buchanan said the reorganization will not affect that outlet because it is a locally owned, franchised operation.
The only connection to the national company, she said, is that the local owners pay a fee for the use of the name and for purchase of merchandise.
The spokeswoman, who declined to be named because she is not the store's owner, said the only problem has been finding new suppliers from which the store can buy merchandise.
A Ben Franklin Store in Salem closed several years ago.
In its fiscal year ended March 31, Ben Franklin lost $27.1 million, or $4.95 a share, on sales of $374.7 million. The loss included expenses associated with the closing of seven of its craft superstores.
Staff writer Mag Poff contributed to this story.
LENGTH: Medium: 55 linesby CNB