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08252006 Carson Pirie Scott to Close Chicago State Street Store

8/25/2006
CARSON PIRIE SCOTT DOWNTOWN
CHICAGO STORE TO CLOSE IN 2007


YORK, PA --  Chicago's Carson Pirie Scott will close its State Street location after the 2006 holiday shopping season, according to Bon-Ton Stores, Inc., the parent company. Bon-Ton cited falling sales, rising costs and operating losses.

Carson Pirie Scott moved into  the Louis Sullivan-designed building at the corner of State and Madison Streets in 1904.
 

Bon-Ton Stores Inc. also said the owner of the landmark site, Joseph Freed & Associates, has redevelopment plans for the location and is giving the Pennsylvania company incentive payments to leave.
 
 Operating costs at the downtown location were "significantly higher€VbCrLf than the average at the chain's other Carson stores, according to Bud Bergren, Bon-Ton ceo. 

The store will close by March 2007.

"Unfortunately, this facility is more than 100 years old and no longer supports our efforts to provide quality customer service by giving our customers a modern, fresh shopping experience,€VbCrLf said  Bergren.

Carson's 25 department stores and five furniture stores in the metropolitan area will remain open, and the company is "actively pursuing opportunities€VbCrLf for a new city location, according to Bon-Ton.

"We have a long-term commitment to this city and the metropolitan area,€VbCrLf said  Bergren.

Bon-Ton said the 300 full-time and 150 part-time workers will be affected by the closure and will be offered the opportunity to interview for open positions at other locations. The employees will receive career transition benefits, including severance and state employment service support.

The Carson Pirie Scott business was founded in 1854 by two Scottish-Irish immigrants, Samuel Carson and John T. Pirie.  Robert Scott joined as a partner in 1890.

After emerging from bankruptcy in 1991, the company was bought by Proffitt's Inc., Bon-Ton bought its parent, Proffitt's, earlier this year.

8.25.06

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