Dawahare’s clothing chain has filed for a court-supervised reorganization plan that involves closing nine of its stores and downsizing its corporate support staff.
The Lexington-based, family-owned company has been in operation for more than 100 years and ranks as the state’s largest Kentucky-based retailer with stores located throughout the commonwealth. However, times have changed dramatically during the course of the last century, said company President Harding Dawahare.
“Today, we find ourselves facing competition from outlets of numerous national chain merchandisers,” Dawahare said, “ and these chains can often purchase goods for less than we can, yet we both sell them for the same price. As a result, in these economically trying times, although we remain competitive, our market shares have diminished, and many of our stores are no longer even marginally profitable”.
Dawahares stores slated to close include those in Owensboro, Bowling Green, Paducah, Glasgow, Maysville, Mt. Sterling, Campbellsville and Newport, and Bluefield, W. Va. Approximately 100 jobs will be eliminated as a result of the store closings; another seven jobs will be cut at Dawahare’s corporate offices in Lexington. The company will employ some 400 people after the closings.