Staff, Customers Can’t Quite Conduct Their Business as Usual

Electronic cash registers beeped with regularity and signs spoke of Valentine’s Day, not bankruptcy, as Broadway department stores across the Southland opened their doors Monday.

But despite the best business-as-usual face, there was no escaping the fact that something was fundamentally changed at the largest division of Carter Hawley Hale Stores, which filed for bankruptcy law protection Monday.

Employees restocking shelves after a big weekend sale openly discussed with each other the Chapter 11 bankruptcy filing, which allows the company to continue operating while a plan is developed to pay its debts. Employees mulled over the latest rumors and speculated on the future of the Los Angeles-based company despite a reassuring memo distributed Monday morning by management.

Customers interviewed outside the stores Monday worried about service and merchandise quality and wondered if shopping in the competitive local retail scene would ever be the same.

“It’s sad to see another company go Chapter 11. It’s a sign of the times. People just can’t make it,” said Rita Kahn, a Delta Airlines ticket agent in downtown San Diego. Kahn’s former employer of 26 years, Western Airlines, was acquired a few years ago by Delta after experiencing financial problems.

“I know what people go through--trauma, jobs lost, people have to relocate. That’s what’s sad, when it affects people’s lives,” Kahn said.

“I’m saddened because I grew up shopping at Broadway,” said Alice Walczy, a Huntington Beach housewife visiting South Coast Plaza in Costa Mesa on Monday. “It’s almost an institution in Southern California. I think they can pull themselves out of this financial problem.”

Employees at the South Coast Plaza store appeared calm. They said they have been informed almost daily of how the parent company is trying to wrestle with its financial problems and the announcement came as no surprise.

Colleen Guthrie, assistant sales manager in the housewares department, said staff morale is high, although some employees fear layoffs.

“I think we’ve been around for a long time and we’re here for the long haul,” she said.

But employees at the Broadway store in Huntington Beach were visibly upset by the news, although reluctant to discuss the matter. Some knew of the parent company’s ills but were unaware how serious they were until Monday morning, when management told them of the bankruptcy filing.

One employee restocking shelves at the Santa Monica Place store loudly proclaimed to co-workers that she was looking for a new job. Others discussed friends who were laid off recently and one joked that employees needed Desert Storm-style care packages “with Chapstick, rent money . . . “

The Broadway stores gave no obvious signals that the parent company was in trouble although some longtime shoppers complained that merchandise and sales help seemed more sparse than normal. While many customers said they were unaware of the bankruptcy filing, nearly all said they were saddened by the news.

Los Angeles resident Janet Murillo, who said she does half of her shopping at the Broadway, said the bankruptcy is “depressing because it’s one of my favorite stores.” Murillo said she would remain a Broadway customer, but expressed concern about the possibility of sudden store closings or changes in rules regarding purchases.

“I’ll continue to shop here, but I’ll think twice about buying something that I might have to return,” Murillo said.

One shopper said the bankruptcy filing might cramp her style.

“I’d be disappointed because I have a charge card here,” said Jackie Hardie of Malibu, who was visiting her mother in Northridge on Monday. “Maybe I should give them more business by shopping here more often.”

Times staff writers Philipp Gollner, Chris Kraul and Cristina Lee contributed to this report.

A Series of Losses Carter Hawley Hale net income/loss by quarter millions Assets: $1.202 billion Liabilites: $1.385 billion (As of Jan. 5, 1991) Source: Dow Jones, bankruptcy filing