Lechters to Close 166 Stores, Cut 725 Jobs

Lechters Inc. said it plans to close 166 stores, cut its work force by 30% and switch its focus to sales of higher-quality kitchen products in a drive to return to profitability. The company said the store closings include its 11 Costless Home retail stores and about 155 additional underperforming store locations, including 128 Lechters outlets and 27 Famous Brands Housewares Outlet stores. About 725 jobs will be eliminated. The closings will leave the Harrison, N.J.-based retailer with 241 Lechters and 83 Famous Brands Housewares Outlet stores. Most Lechters stores will continue to operate under the Lechters name, while the remaining stores will be moved to the retailer’s new “thinkkitchen” brand, the company said. As many as six current Lechters locations will be renovated and converted to thinkkitchen stores by June. The restructuring will result in charges of about $40 million. Store-closing sales will start within the next several days. Lechters shares closed up 13 cents at 47 cents on Nasdaq.