THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, March 18, 1995 TAG: 9503180313
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Short : 45 lines
Catalog retailer Lillian Vernon Corp. is wrapping up negotiations over its multimillion dollar expansion - and the winner appears to be Virginia Beach.
``It looks promising,'' said company spokesman David Hochberg, when asked whether Virginia Beach would be chosen over locations in several other states.
Officials from the New York-based company were finishing up talks with state and local economic officials, Hochberg said. An announcement on the project, worth more than $35 million, probably will come within the next 30 days, he said.
Lillian Vernon has a strong presence in Virginia Beach with 1,000 year-round workers and several thousand seasonal employees who are hired before the holidays, when telephone and mail orders flood the center.
With business booming, the company has decided it needs more room.
If the company picks Virginia Beach, its warehouse space would be increased by 125,000 square feet and its distribution center by 216,000 square feet.
The expansion also could move 1,000 jobs to the area next year. About 400 of those positions would be full-time and the remainder would be seasonal, the city's economic development office has said.
Analysts say that expanding the Virginia Beach facility is easier and less expensive because the extra land is available and the company would keep its distribution centralized. On the other hand, the company has said it may want to diversify in case of disruptions.
The company is forging ahead with its expansion plans while it considers a merger, sale and other options, Hochberg said.
Retail analysts have speculated that founder Lillian Vernon may want to retire. Stephen Marks, president of the company, recently took over merchandising responsibilities from Vernon.
``She's in her 60s and has been running the company for about 45 years,'' said Debra O'Shea, senior investment analyst with Barrington Research in Chicago. ``I would not be surprised if she decided to retire.'' by CNB