Clothestime Plans to Shut Nine Stores in Orange County : Apparel: Discount retailer will close 137 outlets nationwide under bankruptcy proposal.

By GREG JOHNSON

Dec. 14, 1995 12 AM PT

TIMES STAFF WRITER

ANAHEIM —

Clothestime Inc. plans to close 137 stores on Jan. 31--including nine of its 25 Orange County locations--as part of its financial reorganization through bankruptcy court, the company said Wednesday.

U.S. Bankruptcy Court Judge John J. Wilson will review the proposed list of stores during a Friday hearing in his Santa Ana courtroom.

Clothestime, which entered Chapter 11 bankruptcy proceedings on Dec. 8, plans to close a total of 61 stores in California, 11 in Florida, 10 in Washington, nine in New Jersey, nine in New York and eight in Texas. Nearly 800 employees work at the stores to be closed, but the company said an undetermined number of workers would be transferred to stores that will remain open.

It was uncertain on Wednesday how many jobs would be affected in Orange County, but a company spokeswoman said that each of its 550 stores typically has about six employees. The nine Orange County locations include four Clothestime and five Lingerie Time locations.

Friday’s bankruptcy court hearing will give Clothestime’s creditors, including Wells Fargo Bank and Union Bank, their first look at Clothestime’s still-evolving plan to reorganize its finances. Earlier this year, Clothestime secured a $40-million line of credit from the two banks, which are now the retail chain’s largest creditors.

In documents filed Wednesday with the court, Clothestime executives described the targeted stores as “under-performing” locations that are draining cash from the troubled retailer’s healthier stores. Clothestime President Norman Abramson said the closings are designed to help restore profitability at the company that’s lost $18 million in the past two years.

Clothestime will hire a liquidation firm to help move merchandise sitting on shelves of stores to be closed. That could generate added price cuts for bargain-conscious shoppers because liquidators typically slash prices dramatically in order to spark consumer interest.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Closing Time

Clothestime is shutting down four of its Clothestime and five Lingerie Time outlets in Orange County. Stores slated for closure:

CLOTHESTIME

Anaheim

* Brookhurst Shopping Center, 2245 W. Ball Road

La Habra

* La Habra Plaza, 1495 W. Whittier Blvd.

Westminster

* Brookhurst Fashion Plaza, 15576 Brookhurst St.

Placentia

* Placentia Town Center, 132 E. Yorba Linda Blvd.