May Department Stores Co., the fourth-largest U.S. department-store company, will close 32 of its Lord & Taylor locations -- more than a third -- and fire about 3,700 people to focus on its more profitable stores.
The company also will close a Famous-Barr store in Des Moines and a Jones Store in Omaha. The company said it would have pretax costs of about $380 million, including about $320 million, or 70 cents, in the second quarter, St. Louis-based May said.
The company expects annual savings of about $50 million, or 10 cents a share, from the closings.
Shares of May rose $1.01 to $24.46 on the NYSE.