Jamesway Corp., buckling under intense competition and sluggish sales, may abandon any hope for a comeback and announce -- imminently -- plans to liquidate its assets, according to sources.
Officials of the 90-store discount store chain based in Secaucus, N.J., could not be reached for comment late yesterday. But a source familiar with the situation said that the retailer "is going to pull the plug on the whole company."
Last week, Jamesway indicated that it may file for Chapter 11 bankruptcy-law protection, under which the retailer would continue to operate until it could reorganize. Then earlier this week, creditors and others began to speculate that the company might liquidate even if it turns to Chapter 11 bankruptcy &L; proceedings.
Jamesway, which operates stores in New York, New Jersey, Pennsylvania, Virginia and Maryland, including two stores in the Baltimore area, has already been there: The retailer emerged from bankruptcy protection in December, but sales continued to suffer and skittish suppliers began to limit the shipment of merchandise.
The retailing environment has been unforgiving trouble has been widespread. Caldor Corp. of Connecticut recently filed for Chapter 11 protection. And locally, Merry-Go-Round Enterprises Inc., a specialty apparel chain, has operated under bankruptcy-law protection since January 1994.