CENTRAL HARDWARE TO CLOSE

Central Hardware in Cape Girardeau is one of the company's 13 stores that will be closed before year's end during an organizational restructuring.

More than 1,200 employees will be affected by the new management plan, including more than 100 workers at the Cape Girardeau store, 271 S. Broadview.

The Cape Girardeau store is one of four to be closed in Missouri. Stores at Festus, Halls Ferry and St. Charles are also included on the list of closures.

The stores will be closed over a 20-week period starting July 1.

The Cape Girardeau operation, a 90,000-square-foot building, is located on a seven-acre area in Cape Centre.

"We're sorry to see this happen," said Bob Hendrix, president of the Cape Girardeau Chamber of Commerce. "We have been aware of the financial difficulties of the company, but we were keeping our fingers crossed that the Cape Girardeau facility would remain open. More than 100 employees will be losing jobs."

Central Hardware officials say the company will be smaller but significantly stronger when restructuring is completed by late November.

"With downsizing and revenue enhancements in place, we are confident that we can return to profitability," said Neil Marglous, in a statement Wednesday.

Marglous, president of Central Hardware, Witte Hardware, and their parent company, Spirit Holding Company, Inc., said the company expected to realize savings of at least $13 million and achieve about $3 million in earnings by Nov. 30, 1993.

"We plan to offer employees who have consistently demonstrated technical expertise and strong retail and customer services experience an opportunity to transfer to remaining stores," said Marglous.

When the store opened in March 1989, it was the third largest of 37 Central Hardware stores located in six states Missouri, Tennessee, Illinois, Ohio, Kentucky and Indiana.

Marglous noted that Central's sister company, Witte Hardware, will continue to operate as a separate business entity.

Central Hardware closings will take place over a six-month period, starting June 23 in Nashville, Tenn., and Indianapolis, Ind. Other stores that will close over the next five months are Granite City, Ill., and four stores in Cincinnati. Four stores will remain open in Cincinnati.

Prior to the store closings announced Wednesday, Central Hardware employed about 3,800 people in 39 retail home improvement centers. Witte Hardware, a wholesale distributor of hardware, employs about 400 in its Vandalia, Ill., distribution center, and St. Louis office.

Central Hardware and Witte Hardware sought bankruptcy protection under Chapter 11 on March 29 when lender banks attempted to seize their accounts receivable and after their parent company, Spirit Holding Co., Inc., filed for voluntary reorganization.