Dawahares, a 101-year-old family-owned clothing business that became a Kentucky institution, is closing its doors for good.
In late May, the company filed for Chapter 11 bankruptcy reorganization. At that time, company officials said they were closing nine stores that were not profitable, but were confident the reorganization would put the company back on track. Unfortunately, as proceedings moved forward, Dawahares was unable to obtain the loans necessary to complete the restructuring.
“Our goal was to produce and to implement a plan which would allow the company to keep the 22 stores open, and ultimately to be able to satisfy our secured, and possibly some other creditors,” said President Harding Dawahare. “Unfortunately, after a month of trying to make this plan work to the satisfaction of our bank (Fifth Third) and other creditors, we realized our only option was to take this action. We are distressed – for our employees, our family, and for the thousands of loyal customers who have relied on Dawahare’s stores for clothing for their entire family for up to three generations. However, we hope to be able to exit the retail arena in Kentucky the way our family entered it a century ago – with dignity.”
Some 400 Dawahares employees will be affected, in addition to the 107 positions that were lost with the first round of store closings.