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City protests closing of Elder-Beerman

Chamber of Commerce initiates a letter-writing campaign to the retailer's parent company.

By Jessica Heffner, Richard Wilson

Staff Writers

Saturday, January 24, 2009

HAMILTON — City officials are hoping the power of the pen can help prevent the closure of the downtown Hamilton Elder-Beerman store.

A letter sent on behalf of the city, signed by six people including Mayor Don Ryan and City Manager Mark Brandenburger, has been sent to Byron Bergren, president and CEO of Bon-Ton Stores Inc., parent company of Elder-Beerman.

The letter requests a meeting with Bergren.

The company announced it will close the Hamilton store in March due to poor performance.

"This store has been a focal point of Hamilton's downtown since 1968 ... and has remained a key shopping destination and gathering place for all Hamiltonians," the letter states.

The city is still working to set up a meeting with the company, said Kenny Craig, president of the Greater Hamilton Chamber of Commerce.

In addition, the chamber has initiated a letter-writing campaign for residents to express their dissatisfaction with Bon-Ton's decision.

A key point that Craig said the chamber would like letters to emphasize is the loss of sales revenue if the store closes.

"Bon-Ton is encouraging customers that have been loyal to the Hamilton store to drive 30-35 minutes to another local store at the Towne Mall (in Middletown)," he said.

"Nothing against the Towne Mall, but the reality is people aren't going to do that."

Especially when they will pass other retailers including Kohl's, JCPenney and Old Navy in the process, Craig said.

The city's letter outlines other benefits of the Hamilton location. The cost of leasing the Elder-Beerman store is declining by approximately $25,000 in April. In addition, Hamilton's property taxes and utilities are lower than Middletown's, according to the letter.

The store also is located in a federally designated renewal area, which provides additional economic incentives, including federal tax credits, according to the letter.

Craig said he finds it hard to believe the downtown store was underperforming because sales reports from managers during the past five years indicated it was meeting corporate goals.

Bon-Ton spokeswoman Mary Kerr said the company maintains that the closure is due to dropping sales.

Motley Fool, an investor adviser firm, lists Bon-Ton on its "Retail Death Watch" due to its inability to turn a profit within the last 12 months.

Letter-writing

campaign

Send letters to: Byron L. Bergren, president & CEO of The Bon-Ton Stores Inc., 2801 E. Market St., York, PA 17402

For more information or letter suggestions: visit www.hamilton-ohio.com.

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