DATE: Saturday, October 11, 1997            TAG: 9710110381

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: STAFF & WIRE REPORT 

DATELINE: CHICAGO                           LENGTH:   34 lines

MONTGOMERY WARD WILL CLOSES DOORS TO 48 STORES AUTO SERVICE STORE IN PORTSMOUTH WILL BE SHUTTING DOWN

Montgomery Ward & Co. said Friday it will close 48 stores, which could result in the layoffs of 3,800 employees.

Montgomery Ward Auto Express, outside Portsmouth's Tower Mall, will be closed as part of the cost-cutting move, the department store confirmed Friday. The Montgomery Ward Clearance Outlet inside Tower Mall will remain open.

The auto store opened in 1973 and employs 12 people. It occupies a 16,000-square-foot building at 3900 Victory Blvd.

Ward, which is reorganizing under bankruptcy court protection, said the store closings would be subject to court approval but should be substantially completed by the end of December.

The closures will leave Ward with 294 full-line department stores in 37 states.

On July 7, the 125-year-old pioneer of mail-order catalogs became the biggest retailer to seek bankruptcy since the Macy's chain filed for protection five years ago. Ward began languishing in the 1980s as customers went upscale or chose discounters like Wal-Mart, Kmart and Target.

Roger Goddu, chairman and chief executive, said the company is benefiting from a new merchandising plan targeting the company's core customers - 30- to 55-year-old women with household incomes between $25,000 and $50,000. The company's major strengths are appliances, furniture and jewelry. MEMO: Staff writer Ida Kay Jordan contributed to this story.

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