Venator to Close Stores, Lay Off Workers

Venator Group Inc. said it will close 358 stores and lay off 3,700 workers, or a third of its work force, to focus on its most-profitable Foot Locker chain. Venator, which has been transformed from five-and-dime retailer Woolworth & Co. to the nation’s largest retailer of athletic shoes, said it expects the cuts to boost annual pretax profit by about $50 million. The closings include 123 Foot Locker, Lady Foot Locker and Kids Foot Locker stores; 27 Champs stores; and 208 Northern Getaway and Northern Elements stores in the U.S. and Canada. The job cuts include 600 corporate workers and 3,100 sales associates. Venator also plans to consolidate the management of its Kids and Lady Foot Locker chains into one organization. Since 1994, Venator has slashed its work force by more than half, sold smaller chains, closed less-profitable stores and consolidated warehouses to cut costs. The company will take a fiscal fourth-quarter charge of $53 million, or 39 cents a share, as a result of the new moves. Analysts expect the company to report operating profit of 26 cents for the quarter ended this month. New York-based Venator closed up 13 cents at $6.50 on the New York Stock Exchange.