NORTH ADAMS - The Fashion Bug here is being squashed by its corporate parent, putting 10 people out of work.
An anchor in the downtown's L-shaped mall for 24 years, the women's clothing store will close its doors by the end of January along with another store in Northampton.
Store manager Lida Watters said employees were officially informed last week of the closing. They had heard rumblings of possible closings as the last quarter ended but after several weeks, thought they were safe.
"They didn't give us a reason," said Watters, but she noted the North Adams store hadn't been included in a round of renovations at other area shops. "I think they looked at the the cost of renovations, and the lease is coming up."
What struck her, she said, was how quickly the store was ordered to close. "Usually it's three to five months but they told us we have to close at the end of January."
Mayor John Barrett III said he had been aware the store might close since last summer. The company had never applied for new signage after the exterior of the mall was refurbished earlier this year, he pointed out. While its neighbors have new signage, Fashion Bug is still using a temporary banner. "I was told they probably would not keep the store here past January."
He said he had spoken with the owner of the plaza, Neil Ellis of Hartford Realty, about the store's departure.
"Neil Ellis told me emphatically that they would have something similar in there," said the mayor. He pointed to Ellis' ability to pull in good tenants like Peebles and Staples.
The store is owned by Charming Shoppes Inc., based in Bensalem, Pa. The company also owns the Lane Bryant and Catherine store chains. Five years ago, the company closed or converted 121 Fashion Bug stores. It also discontinued its Added Dimensions/Answer chain and its 77 stores.
Calls to corporate headquarters were not immediately returned, but the company reported a loss of $3.6 million at the end of the third quarter and 4 percent drop in sales from the previous quarter.
In a press release last month, Dorrit J. Bern, chairman, chief executive officer and president, put the "disappointing performance" to a general downward sales trend "which both we and our industry experienced."
"Our fall selling season had a very slow start, particularly at our Lane Bryant brand, and we expect the holiday season to be highly promotional throughout our industry."
The company listed 1,004 Fashion Bug and Fashion Bug Plus stores, 923 Lane Bryant and outlet stores, 471 Catherines stores, and 55 Petite Sophisticate and Petite Sophisticate Outlet stores in November.
Watters blamed the economy in general for the closure, with which Barrett agreed.
"This has nothing to do with this area and the business [this store] did. They were doing well, Peebles is doing well," he said. "It's about the company."
"I'm sad to see it go. It was a major part of the L-shaped mall for a long time."
It also wasn't happy news for the 10 part- and full-time workers, said Watters, who has been with company 12 years and this store nearly 10. Even if some might be able to find a spot in the Pittsfield and Bennington, Vt., stores, transportation is difficult, she said.
Watters was trying to remain cheerful.
"I've got to laugh or I've got to cry," she said. "And I'd rather laugh."
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I am sad to see another retail store leaving north adams. But,, Sometimes a step back is just what we need to take a giant leap forward. i woudl urge local leaders to look at the landscape of north adams. i have hurd rumblings of a walking path down eagle street with sculptures. Reshaping our town is what the local economy needs. I am sad to see people our of work, but I am not sad to see a big box retailer leave town. I believe in local economy, i think money spent here shoudl stay here. I Also believe in a strong local economy, and developing a plan to incorperate the Mohak, eagle street, and mass moca will truely make north adams a destination.
The subcommittee is recommending the budget of $20,357,096, up $302,744 or 1.51 percent over this year. This was expected to be funded by $16,418,826 in state Chapter 70 education funds, local funding of $3,938,270 (up $100,000 over this year) and a drawdown of school funds of $575,237. This will also include the closure of Greylock School at the end of this year and the reduction of 26 full-time positions.
A hybrid public hearing on the budget will be held on Thursday, May 23, at 5:30 at Brayton School, with a vote by the School Committee to immediately follow.
The extra $100,000 from the city will likely not be part of this funding package, warned Mayor Jennifer Macksey, chair of the School Committee.
"Going through all my process on the city side, so to say, with the rest of my departments, it's going to be really hard for me to squeak out the additional $100,000," said the mayor, alluding to a budget gap of $600,000 to $800,000 for fiscal 2025 she's trying to close.
"I just want to be fully transparent with everyone sitting here, and as your School Committee chair, I don't know if the city budget is going to be able to squeak out that $100,000. That number will most likely change."
Director of School Finance and Operations Nancy Rauscher said the $100,000 had been a placeholder with administration understanding that it could change.
The closure was announced on the store's Facebook page late Sunday night, where it immediately drew comments of remembrance and well-wishing.
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The School Committee will be presented next week with a $20 million spending plan for fiscal 2025 that includes closing Greylock School and a reduction of 26 full-time positions.
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