April 16, 2024
Business

Ames agrees to new sales policies as stores prepare to shut down

ALBANY, N.Y. – Ames Department Stores Inc. agreed Friday to modify its sales policies to better protect customers as its stores go out of business, announced New York state Attorney General Eliot Spitzer.

The attorneys general from New York and six other states, including Maine, sought and won the modifications, which include an extended final date for returns and exchanges.

“It is essential that the state plays an increased role in ensuring consumer protection during these going-out-of-business sales,” Spitzer spokeswoman Christine Pritchard said. “With the downturn in the economy, it’s important in bankruptcy proceedings to protect not only creditors but the interest of consumers as well.”

A call for comment to Ames’ headquarters Friday afternoon was not immediately returned.

Officials at Rocky Hill, Conn.-based Ames, which sought bankruptcy court protection last August for the second time since 1990, said Wednesday it would close all 327 stores in 14 states and the District of Columbia, leaving about 22,000 employees without jobs.

The company’s 85 stores across New York employ 4,789 people, or 22 percent of Ames’ total work force. In Maine, more than 1,000 jobs will be lost at 20 stores.

In its announcement Wednesday, Ames said that subject to the approval of the U.S. Bankruptcy Court in the Southern District in New York, it expected to promptly designate a liquidator to conduct “going out of business” sales at all Ames stores.

The attorneys general intervened, asking the company to guarantee it would not use false advertising or deceptive sales practices, according to Spitzer’s office.

In an agreement approved Friday by U.S. Bankruptcy Judge Robert Gerber, Ames extended its final date for returning or exchanging merchandise bought before Sunday – when liquidation sales are slated to begin – from Aug. 25 to Sept. 9. That is closer to the normal, 30-day purchase leeway customers expect, Pritchard said.

Customers also have until Sept. 9 – rather than Sept. 1, the company’s initial deadline – to pick up any merchandise put on layaway before Sunday. Store managers will notify lay-away customers by phone and mail. After Sept. 9, they can be refunded their deposits.


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