Lowe's closing 20 stores, none in E. Texas - KLTV.com - Tyler, Longview, Jacksonville |ETX News

Lowe's closing 20 stores, none in E. Texas

Released by Lowe's:

Lowe's is closing 20 under performing stores in 15 states. Ten locations closed at the end of business Sunday, October 16. The remaining 10 locations will close within approximately one month, following an inventory sell-through.

The stores affected are located in:

Los Banos, CA
Biddeford, ME
Old Bridge, NJ
Westminster, CA
Ellsworth, ME
Batavia, NY
Denver, CO
Ionia, MI
N. Kingstown, RI
Aurora, IL
Rogers, MN
Emporia, VA
Oswego, IL
Claremont, NH
S. Tacoma, WA
Chalmette, LA
Hooksett, NH
Brown Deer, WI
Haverhill, MA
Manchester, NH

The average age of these stores is approximately four years. The stores can be stratified by year of opening as follows:

After 2007 10
2006 - 2007 8
Before 2006 2
Of the 20 stores, 11 are leased locations and nine are owned.

In addition to the store closings, after completing a comprehensive review of its pipeline of proposed new stores, the Company announced it has discontinued a number of planned new store projects. The Company now expects to open 10 to 15 stores per year from 2012 forward, compared to a prior assumption of approximately 30 stores per year. All of these stores will be in North America. The Company is on track to open approximately 25 stores in 2011, as planned. Approximately three-fourths of these stores will be in the U.S. with the remainder in Canada.

The expected financial impact of $0.17 to $0.20 per diluted share was not contemplated in the business outlook for fiscal 2011 which the Company provided on August 15 when it released its second quarter earnings. This expected impact reflects anticipated charges of $345 to $415 million, which include the following:

Exit costs, including costs associated with lease obligations, employee terminations and inventory adjustments Impairment of long-lived assets and the write-off of discontinued project costs

The Company expects to recognize total exit costs related to the store closings and discontinued projects of $100 to $130 million. Charges associated with lease obligations, net of estimated sublease income, are estimated to range from $80 to $100 million. Charges associated with employee termination costs are estimated to range from $10 to $15 million. Charges associated with the lower of cost or market adjustments to inventory are expected to range from $10 to $15 million. All estimated amounts are subject to change until finalized. Charges for these exit costs are expected to be recorded in the third and fourth quarters of fiscal 2011. Total future cash outflows associated with these charges, consisting of net payments on the lease obligations over remaining lease terms and employee termination costs, are expected to be $90 to $115 million.

The store closings and discontinued projects are expected to result in a non-cash charge ranging from $245 to $285 million for impairment of the Company's long-lived assets associated with these locations and the write-off of discontinued project costs. The non-cash charge is expected to be recognized entirely in the third quarter of fiscal 2011.

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