Store of Knowledge to close 21 stores
By Maria Weiskott -- Playthings, 5/7/2001 7:13:00 AM
SCOTTSDALE, ARIZ. Store of Knowledge has opted for the safety net and is reorganizing under Chapter 11 protection following months of relentless effort to keep its chain afloat in a turbulent retail atmosphere.Jim Berk , the company's president and CEO, stated that Store of Knowledge was in Chapter 11 during the opening session of this weekend's annual ASTRA convention here. Berk was a member of the conference's opening panel, which might be said was aptly titled for the occasion: "The shifting landscape around us: earthquake or tremor?" He affirmed the shift was an earthquake.
Berk said that the reorganization plan called for 70 stores to be in operation by July. Originally, the Store of Knowledge chain of mall-based upscale specialty stores consisted of 91 locations.
During the past several months Store of Knowledge garnered staunch support on several fronts in trying to develop an agenda that would keep the specialty chain viable. Earlier this year, a Supplier Steering Committee — which included major players from the manufacturing front — was formed as part of the effort.
In addition, Store of Knowledge had developed a plan that included a "cash for shipping" program, deferral of over $2 million of royalties to the chain's Public Television partner stations, as well as some of the more traditional cost reductions. Berk even deferred his own salary until December in the effort to save the chain.
The efforts followed a failed bid by Store of Knowledge to purchase the now bankrupt Natural Wonders specialty chain.
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