Oshman’s to Lay Off 60 at Santa Ana in Consolidation

Hurt by a slowing economy and tough competition in the retail market, Houston-based Oshman’s Sporting Goods Inc. is laying off 60 employees at its Santa Ana office and consolidating its two main divisions in California and Texas at its Houston headquarters, company officials said.

The layoff, affecting more than half of the company’s 117 employees in Santa Ana, will occur in the next two to four months, said Alvin Lubetkin, Oshman’s chief executive.

There will be no further layoffs in 1991 at the company’s California operations, said Edwin R. Carlin, a company spokesman.

The consolidation is expected to save the company $2 million annually and will create 35 new jobs in Houston, with 15 filled by transferred employees from Santa Ana. The cost of relocating the Santa Ana office and paying severance programs for laid-off workers will result in a one-time charge against earnings of $1.5 million, which will appear in its results for the fourth quarter ended Feb. 2.

For the year, the company anticipates a loss of between $4 million and $5.5 million, most of which occurred during the first three quarters. The company said it expects to report in late March that it broke even for the fourth quarter.