11/4/2008 7:00:00 PM Home furnishings chain closing Arizona stores
American Home Chief Operating Officer Ted Leveque announced Tuesday that all American Home furniture stores in Arizona, including this store in Frontier Village will close over the next five months.
Jason Soifer/The Daily Courier
PRESCOTT - The city is losing its third 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 that 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 with the news.
"This is pretty typical in this economy with the way things are going," he said.
Sherri Jean, manager at 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 and Marler's furniture stores also closed within the previous 18 months.
Contact the reporter at jsoifer@prescottaz.com
Reader Comments
Posted: Thursday, November 06, 2008
Article comment by:
Scott Braun
I worked for American Home for 12 years, they were an outstanding company to be employeed by.
Scott Braun
Posted: Wednesday, November 05, 2008
Article comment by:
Mr.Busta
Oops #2 by paper who cares if it was on indian land or city they are talking about losing another furniture store in the city.
Posted: Wednesday, November 05, 2008
Article comment by:
Not Shocked
I am personally not shocked that this store went under. I had a very bad experience with American Home and they acted like they could care less. Many people have shared similar experiences. You cant do business like this and get away with it.
Posted: Wednesday, November 05, 2008
Article comment by:
College Student Concerned with the Economy
Quite unfortunate. My roommates and I split on the purchase of a few furniture pieces from this store; decent quality at a fair price ... But most furniture and home-essential related stores have suffered as a result of a depressed housing market, and this does not surpise me. Other larger examples include the Levitz and Wickes Furniture stores. However -- although somewhat unrelated to furniture sales -- what perplexes me is that 1) a Lowe's store was opened less than one mile from another Home Depot store, and 2) an additional Home Depot was opened in Prescott Valley. Perhaps a good [HD] strategy in the extended future (5+ years); but is certainly not helpful with its short-term finances -- especially when after it sold its $12.9 billion revenue wholesale division and construction supply division to make repurchase of common [horrid] stock. But to be fair, the dividend is above-average -- just as long as management does not decide to slash it (ex. to the likes of Bank of America, Citi, Fannie Mae, Freddie Mac, etc.). Nonetheless, maybe you can land some "sweet" preferred stock transaction with a fixed divident rate, LOL!
Posted: Wednesday, November 05, 2008
Article comment by:
Tom Steele
Maybe Kirkpatrick (D) can get a "bailout" for our area; what do you think? American Home was a good store I spent money in. however, timing is everything and the economy tanked on housing then "everything".
Posted: Wednesday, November 05, 2008
Article comment by:
oops #2 by paper
This store is on reservation land. Therefore, the COP did not lose anything since no city sales tax was collected.
Posted: Wednesday, November 05, 2008
Article comment by:
Angela Baker
I work at American Home and I just wanted to say that the part of employees being informed is incorrect. I was not informed of this and was actually told about this article by a friend and ex-coworker.
