Originally Published: November 5, 2008 8:01 p.m.
PRESCOTT - The city is losing its fourth home furnishings store in less than three years.
Ted Leveque, chief operating officer of American Home, announced Tuesday afternoon plans to shutter the store in the Frontier Village Center.
"We will be closing our Arizona market," he said. "We will be closing down the stores; we have informed our stores' employees about the closures. We will be going through a liquidation process."
Leveque said store closures will hit over the next five months.
The move means 30 to 40 people locally and roughly 300 people statewide potentially hitting the unemployment line.
"You're seeing this all over the retail industry," he said. "Companies are having to make some very hard decisions in a very, very difficult consumer environment and economic environment."
Leveque says the housing crunch, credit crisis and declining consumer spending are the reasons behind the move to close six stores statewide.
"We can't sustain a business at this point at the levels the consumer is spending," he said.
American Home announced Monday that it voluntarily filed for Chapter 11 with the U.S. Bankruptcy Court for the Central District of California.
The New Mexico-based retailer opened its roughly 120,000-square-foot showroom in the former Wal-Mart spot in 2005.
People like Mike Greenway, co-owner of Culinary Palette, were not surprised by the news.
"This is pretty typical in this economy with the way things are going," he said.
Sherri Jean, manager of Western clothing store Corral West, said business at the home furnishings store seemed sparse to her.
"I think it's pretty scary if you ask me," she said. "Just because (of) the way the economy is."
Breuner's, The Oak Tree and Marler's furniture stores also closed within the previous 18 months.
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