Sprouse-Reitz Inc. says it will close 23 stores in five states this summer, including five in Utah, in an attempt to help pull the company out of its financial troubles.
Robert A. Sprouse II, grandson of the retail chain's founder, also said he will step down as the company's president and chief executive officer. Sprouse was elected chairman of the board at Monday's annual meeting of the family-owned operation, which was established 82 years ago.Sprouse said some stores would close in Oregon, California, Arizona, New Mexico and Utah in July and August. That will leave the chain with 231 Sprouse variety outlets in 10 Western states.
A company spokesman said the company will closes stores in St. George, Cedar City, two in Provo and at 4151 S. Redwood Road. That will leave the company with eight stores in Utah.
Sprouse said the board of directors will be looking for an experienced merchant who has the talent to help turn around the troubled company, which hasn't shown a profit since 1987.
"Although Sprouse-Reitz has been operated by the Sprouse family since its inception, I believe this step will complement the efforts of the board to enhance shareholder value in the near term," Sprouse said.
The company lost $3.17 million in the first quarter of this year.