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Doneckers closes Ephrata, Pa., fashion store(Lancaster New Era (PA) (KRT) Via Acquire Media NewsEdge) Aug. 7--Doneckers announced Wednesday it will close its fashion store, an Ephrata institution since 1961, within the next few months. The decision, which will idle more than 100 employees, comes five weeks after the retailing firm shut its upscale restaurant. However, Doneckers said in a press release that it will continue to operate its guest houses and its fine furniture gallery. The news ends more than two months of speculation about the fate of the landmark businesses, known for their classy merchandise and attentive service. Paula Hosler, Doneckers' director of human resources, said there is not yet an exact date for the store's last day, though it will come by year-end. Hosler blamed the closing on a "difficult" economy. Founder Bill Donecker could not be reached for comment. The weak economy, which has curtailed consumer spending and made credit tight for retailers and other businesses, has forced numerous merchants to close, reorganize and/or downsize. Most recently, it pushed Boscov's into bankruptcy reorganization Monday, a move that will lead to the closing of 10 of its 49 stores, although its Park City location will remain open. Ephrata Mayor Ralph Mowen said the closing of a store as large, well-known and established as Doneckers is sure to have an impact on the town. But he was confident that Ephrata, as "a resilient community" that has rebounded from the loss of other major employers, would recover from the demise of the Doneckers store too. "This isn't going to cause Ephrata to collapse," said Mowen. Rumors that Doneckers was facing financial troubles, and might close at least some of its operations, surfaced in late May. At that time, and in the weeks that followed, store officials did not respond to repeated requests for comment on the North State Street retailing empire's future. But indications of impending change soon surfaced. The fashion store, which sells clothing and home-decorating items, and the fine furniture gallery, located three blocks away in the Artworks building, began sales with unprecedented markdowns in early June. Terms of the sales -- no returns or refunds, no checks or Doneckers credit cards accepted -- heightened worries that the businesses were nearing the end. The restaurant closed at the end of that month, leaving a message on its answering machine that says a fall reopening is planned after a reorganization and renovations. In the three-paragraph statement issued Wednesday, Doneckers noted its heritage of family ownership and its focus on "customer service, quality selection and superior style. As times change and businesses evolve, Doneckers faces challenges of it's (sic) own. ..." The statement thanks its "loyal customers and outstanding, long-term employees for their support and dedication over the years." It concludes by implying that changes in ownership could come in the remaining businesses, at least. "Bill Donecker is exploring all options and hopes that a new generation of Doneckers will emerge with his daughter, Melinda Donecker Beatty, playing a significant role," the statement ends. To see more of the Lancaster New Era, or to subscribe to the newspaper, go to http://www.lancasteronline.com/newera. Copyright (c) 2008, Lancaster New Era, Pa. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |