kmbrly Posted May 2, 2008 Share Posted May 2, 2008 Home Depot to close 15 U.S. storesBy HARRY R. WEBERAP Business Writer ATLANTA --Nearly 7 1/2 months after its chief executive said there were no plans to cut the number of its core retail stores, The Home Depot Inc. announced Thursday that it is shuttering 15 of them amid a slumping U.S. economy and housing market. The move will affect 1,300 employees. It is the first time the world's largest home improvement store chain has ever closed a flagship store for performance reasons. Its shares rose almost 5 percent. The Atlanta-based company said the underperforming U.S. stores being closed represent less than 1 percent of its existing stores. They will be shuttered within the next two months. The stores to be closed consist of three in Wisconsin, two in Ohio, two in New Jersey, two in Indiana and one each in Kentucky, Louisiana, Minnesota, North Dakota, New York and Vermont. A company spokesman said some of the employees will be relocated, while others could lose their jobs. Spokesman Ron DeFeo said Home Depot has only closed one of its flagship stores previously because of structural damage. Last year, Home Depot closed its 11 Landscape Supply stores. It also has previously shut a number of its Expo design centers. The company reiterated Thursday its intention to open 55 new retail stores in the 2009 fiscal year. On Sept. 21, 2007, Home Depot CEO Frank Blake told The Associated Press that the company had no plans to make any broad-based job cuts or reduce the number of its core retail stores in the face of a persistent housing slump that wasn't expected to improve anytime soon. Since then, the economy and the housing market woes have grown worse, and Home Depot has announced several rounds of job cuts. In December, Home Depot said it would cut 950 jobs and close three call centers that handle orders for home installation. The next month, Home Depot said it would cut 500 jobs at its headquarters. Home Depot has sought over the last year to focus more attention on its core stores. In August 2007, it sold its wholesale distribution business, HD Supply, to a group of private equity firms for $8.5 billion. Due to the store closings announced Thursday, Home Depot will record a charge of roughly $186 million, including inventory markdowns of $11 million and severance of $8 million. It also will record a charge of roughly $400 million related to development costs and ongoing obligations associated with the future store locations that it is scrapping. New store capital spending will be reduced by $1 billion over the next three years, Home Depot said. Excluding charges, the company reiterated that its diluted earnings per share from continuing operations are expected to decline by 19 percent to 24 for fiscal 2008. Home Depot releases its first-quarter results May 20. Its shares rose $1.38, or 4.8 percent, to $30.18 in morning trading. Home Depot operates 2,258 stores in the United States, Canada, Mexico and China. -------------------------------------------------------------------------------- Link to comment Share on other sites More sharing options...
smangham Posted May 2, 2008 Share Posted May 2, 2008 Shoot! We are rumoured to be getting one here.....wonder if this will change all that. Link to comment Share on other sites More sharing options...
boblabontefan Posted May 2, 2008 Share Posted May 2, 2008 three in WisconsinDang! I hope my local store stays open. Link to comment Share on other sites More sharing options...
jones10021 Posted May 2, 2008 Share Posted May 2, 2008 Not a good sign. I hope economy recovers soon. Link to comment Share on other sites More sharing options...
RmV73 Posted May 2, 2008 Share Posted May 2, 2008 Well only one in NY. Hope its not Albany....... Link to comment Share on other sites More sharing options...
AndreaInNC Posted May 2, 2008 Share Posted May 2, 2008 to be honest with you I stopped shopping at HD when I learned they outsource. Link to comment Share on other sites More sharing options...
boblabontefan Posted May 2, 2008 Share Posted May 2, 2008 Stores to close in Wisconsin are in Northern Milwaukee, Bever Dam and Fond du Lac. Whew, not the one by me. Link to comment Share on other sites More sharing options...
citrixgirl Posted May 2, 2008 Share Posted May 2, 2008 not the ones near me but if there are going to clearance some of the stuff I have had my eye they are close enough to go to The East Brunswick and Saddle Brook stores will be closed Friday as the staff prepares to sell off remaining merchandise. They will reopen Saturday and continue operating until the stock is gone, said Sheriee Bowman, a spokeswoman for the company. "We are anticipating about seven weeks," Bowman said. There closures will leave New Jersey with 65 locations Link to comment Share on other sites More sharing options...
sas377 Posted May 3, 2008 Share Posted May 3, 2008 I knew they were in trouble when they cleared and leveled land to build a store near me (I have 2 within 20 minutes, but they were building a third that would have been only 5 minutes from me.) and then pulled out and left the site. Link to comment Share on other sites More sharing options...
elena_398 Posted May 3, 2008 Share Posted May 3, 2008 wonder which ones in ohio Link to comment Share on other sites More sharing options...
dessenma Posted May 3, 2008 Share Posted May 3, 2008 wonder which ones in ohioI heard on the news today the ones to close in Ohio are in the western part of the state. Lima was one of the stores, and I think maybe Findlay was the other one.(not totally positve about Findlay though) Link to comment Share on other sites More sharing options...
CG480 Posted May 4, 2008 Share Posted May 4, 2008 I work in Fond du lac right next to the HD and wow were they busy yesterday they now have 10 to 30% off of everything in te store. I might have to go there. Link to comment Share on other sites More sharing options...
sigrist_2000 Posted May 4, 2008 Share Posted May 4, 2008 I heard on the news today the ones to close in Ohio are in the western part of the state. Lima was one of the stores, and I think maybe Findlay was the other one.(not totally positve about Findlay though)yes Lima and Findlay, Ohio stores are closing Link to comment Share on other sites More sharing options...
boblabontefan Posted May 5, 2008 Share Posted May 5, 2008 I work in Fond du lac right next to the HD and wow were they busy yesterday they now have 10 to 30% off of everything in te store. I might have to go there.I just bought my patio set from the Janesville store. Had I known they were going out of business I would have made the trek to Fond du Lac or Bever Dam to get the discount. Link to comment Share on other sites More sharing options...
VTmommy Posted May 6, 2008 Share Posted May 6, 2008 Does anyone know which store in VT is to close? We now live in NH, but close to VT. And we still have to move our stuff from VT to the new house in NH this month! We also need to purchase some stuff, and it would be great to be able to snag a discount, even if we had to drive a bit. We need some small things like curtain rods, plants and lighting fixtures, and bigger stuff like a new gas grill, patio set and a washer/dryer! Is there a list of stores to close posted anywhere? Thanks! Link to comment Share on other sites More sharing options...
citrixgirl Posted May 6, 2008 Share Posted May 6, 2008 http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20080504/BUSINESS/805040349/1003/RSS03this is what i found hope it helps. Link to comment Share on other sites More sharing options...
mysticmage Posted May 8, 2008 Share Posted May 8, 2008 They are having a very hard time competing with our local Lowes around here. Link to comment Share on other sites More sharing options...
Karmarose Posted May 8, 2008 Share Posted May 8, 2008 I knew they were in trouble when they cleared and leveled land to build a store near me (I have 2 within 20 minutes, but they were building a third that would have been only 5 minutes from me.) and then pulled out and left the site.They made a huge deal with the county here and just pulled out this month. They were supposed to start building this summer. I was actually looking forward to having some jobs that weren't a 45 min drive away. Of course why shouldn't they be suffering when the building industry is slow. Link to comment Share on other sites More sharing options...
loves30 Posted May 8, 2008 Share Posted May 8, 2008 one is nj is one of the two near me. im sad anyone has to loose. but i do love sales Link to comment Share on other sites More sharing options...
jbdinos Posted May 8, 2008 Share Posted May 8, 2008 anyone knows which store(s) in Indiana? Link to comment Share on other sites More sharing options...
jones10021 Posted May 8, 2008 Share Posted May 8, 2008 They might be closing a Home Depot in my area. That's not good considering we want to renovate our bathrooms. Shoot! Link to comment Share on other sites More sharing options...
VTmommy Posted May 8, 2008 Share Posted May 8, 2008 citrixgirl -- thanks for the article link! Brattleboro is in southern VT, near MA. It would be an hour or so drive. Maybe a good road trip. Does anyone know how long these "sales" are supposed to be going on for (approximately)? Are they likely to cut prices much, or just to a certain point and then send the remaining inventory to a different store? Link to comment Share on other sites More sharing options...
citrixgirl Posted May 8, 2008 Share Posted May 8, 2008 They might be closing a Home Depot in my area. That's not good considering we want to renovate our bathrooms. Shoot!only one closing in NYS and that is in rome ...... Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now