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Saks Sacks 98 Libby Lu's
Sandra Guy
Chicago Sun-Times
November 6, 2008
Saks will close by May its 78 “tween” stores and 20
shops called Club Libby Lu, a concept that founder Mary
Drolet started in Chicago eight years ago.
Saks CEO Steve Sadove described as “innovative” the
tween concept, where girls ages 6 to 12 play dressup,
have birthday parties, and sprinkle magic fairy dust.
But he said it no longer fits with Saks’ focus on its
core Saks Fifth Avenue business.
Sadove said Drolet, a long-time Lincoln Park resident,
has been “a great partner” and thanked her for her
“innovation, creativity and dedication.”
Drolet could not be reached for comment early Wednesday.
Club Libby Lu employs 1,700 at all of its stores,
including eight stores in the Chicago area, and has 70
employees in corporate, warehouse and support jobs at
2700 W. Grand Ave. Employees will be offered severance
packages.
The local stores are at Fox Valley Center in Aurora; St.
Clair Square in Fairview Heights; Gurnee Mills; Oakbrook
Center; Orland Square mall; Cherryvale Mall in Rockford;
Woodfield Mall in Schaumburg, and at the Southlake mall
in Schererville, Ind.
Club Libby Lu operates 20 of its locations as
shop-in-shops in former Saks-owned department stores
Carson Pirie Scott & Co., Belk and Younkers.
The Club Libby Lu business generated $60 million in
sales last year. Saks will take an after-tax charge of
$11 million in the third quarter and after-tax charges
of $18 million to $27 million in the fourth quarter for
the closing.
Saks has been selling off its non-core holdings. It sold
its northern department store group, including Carson’s,
to Bon-Ton Stores for $1.2 billion in March 2006, and
sold its Proffitt’s/McRae’s business to Belk for $622
million in May 2005.
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