Thorngate closing outlet store by February

Just four weeks after announcing it would be laying off the remaining employees at its plant in Cape Girardeau by mid-to-late January, Thorngate Ltd. told the Southeast Missourian it is closing its clothing store at 10 N. Sprigg St. by February. The clothing store employs one person.

The news means the company no longer will employ a workforce in Cape Girardeau.

Lennart Bjorklund, vice president of manufacturing for parent company Hartmarx, credited the declining sales and a slowing economy for the closures.

"With the business climate the way it is, there was no way around this," said Bjorklund, who said the outlet store would be offering deep discounts until its closure. "We tried to avoid this action through a reduced workweek and prolonging the layoffs."

In mid-August, the company announced it would be reducing its employees' workweek from five to three days.

However, Bjorklund said that wasn't enough to keep the company from announcing in early September the elimination of its entire sewing department by November. About 250 people were affected.

Two months later 70 employees in its cutting department learned they would be losing their jobs.

Hartmarx's third-quarter revenue were $124 million compared to $135.2 million in 2007. Through the first nine months of the year, revenue were $374.5 million compared to $411.2 million during the same time period last year.

Shares on Tuesday were listed at 11 cents, well below its 52-week high of $3.52.

Earlier this year, president-elect Barack Obama visited the plant at 1507 Independence St. Speaking on the campaign trail on May 13, Obama said that the "economic pie has grown, but the average family is getting a smaller and smaller slice."

bblackwell@semissourian.com

388-3628