Sprouse taps Wal-Mart exec - Sprouse-Reitz Stores Inc., Donald E. Tripp

Discount Store News, Sept 2, 1991

Sprouse Taps Wal-Mart Exec

PORTLAND, Ore. - Variety store retailer Sprouse-Reitz has named Donald E. Tripp president and chief executive officer. The chain also said it plans to close stores - and lay off employees - to help it return to profitability.

The pressure to trim down has been increased by the decision of Sprouse's longstanding principal bank to discontinue the chain's credit line beyond Dec. 31, 1991.

Tripp assumes the position vacated by Robert A. Sprouse, who will continue as chairman of the board. Tripp served on Sprouse's board since 1989. He was senior vice president and general manager of Wal-Mart's Hypermarket USA for part of 1988. He spent most of his retail career - 1971 to 1988 - with Fred Meyer, where he last was senior vp, home improvement/garden centers. Since leaving Wal-Mart, Tripp has run his own retail consulting firm.

The restructuring plan calls for 75 stores to close during 1991; 16 have closed already. About 650 store personnel will be laid off across the chain's 10-state western trading area, leaving it with 190 general merchandise stores by year's end.

The restructuring charge associated with the closings is expected to hurt Sprouse's sales and earnings for the second quarter, ended July 30. The report of the quarter's results was postponed while the company determines the amount of the charge, but figures are likely to be released this week. Sprouse was finalizing the renewal of its operating line of credit at press time.