Ames Plans Closings, Files for Chapter 11

Ames Department Stores Inc., which last week said it will close 47 stores and eliminate 2,000 jobs, filed for Chapter 11 bankruptcy protection.

The discount retailer, which lost money during eight of the last nine quarters, listed $1.9 billion in assets and $1.55 billion in debts in papers filed in Bankruptcy Court in Manhattan.

The Rocky Hill, Conn.-based company is trying to survive in the face of a slowing economy and competition from No. 1 retailer Wal-Mart, analysts said. A string of other discount retailers, including Lechters Inc. and Bradlees Inc., have filed for bankruptcy protection in the last year.

The more than 400 Ames stores that remain after the planned closings will stay open during the bankruptcy restructuring. The company, with about $4 billion in annual sales, now operates 452 stores in 19 states and the District of Columbia.

Ames shares fell 2 cents to 69 cents on Nasdaq