Service Merchandise to Cut Work Force 10%

Service Merchandise Co. said it’s trimming 1,750 full-time employees to reduce expenses as it attempts to pull out of bankruptcy. The job cuts represent 10% of the Brentwood, Tenn.-based retailer’s work force, which already had been reduced from 25,000 full-time employees two years ago to 16,974. The company cited a difficult holiday season for retail in general and a need to streamline amid competition as reasons for the latest cuts. Service Merchandise filed for Chapter 11 bankruptcy protection in March 1999. The latest job cuts and other consolidations should save $35 million on top of $18 million in cost savings announced in March. Chief Executive Sam Cusano said the company also has found a new chief financial officer, whose appointment will be announced once that person gains approval by the Bankruptcy Court. The company has lost several senior executives in recent months and announced the resignations of two others.