Jamesway's New Year's resolution: reduce, revamp for '94 rebound

Discount Store News, Jan 3, 1994

SECAUCUS, N.J. -- Jamesway presented a 1994 plan to its creditors last month that included provisions for a number of store closings as well as 11 more store remodelings.

"Our December sales are flat compared to last year, which is about what we expected," said Joseph Ettore, president, ceo.

Ettore noted that the chain, which declared Chapter 11 in June 1993, was "hanging on."

"You're always hoping things were better, but we've got things on track and we're where we planned," he said.

On the positive side, Jamesway has used only $3 million of a $75 million DIP loan and has a good cash flow, according to Ettore. Jamesway does have its inventory supply lines--which had been severely effected--back on track.

"Our inventory is down compared to last year, but we needed to do that," Ettore explained.

Ettore would not reveal the exact number of store closings planned for 1994, noting that some of the decisions would depend on lease negotiations.

Ettore said store remodeling, begun in late 1992, would continue with 11 stores slated for 1994.

According to Ettore, radio exposure for the Eastern retailer has helped attract customers. It has signed a one-year contract with radio spokesperson Tom Bodett, known for his radio ads for the Motel Six chain. Bodett's ads are used to support Jamesway circulars, one set emphasizing specific products, while a second set describes the changes at Jamesway.

Ettore himself has taken a turn at the microphone. American Express invited him to participate in a radio campaign to benefit the hungry.

The spots began running in early December. "It was free and it was for a good cause," explained Ettore, who was paid actor's scale to do the job. He gave the money to charity.

Will he join the ranks of Charlie Lazarus and Joe Antonini and do television next?

Ettore joked: "One of the people I worked with on the radio spot told me |You have a face for radio.'"