Reported by: Lisa Miller - WMBD/WYZZ TV

 

03/28/2007 08:36pm

 

WMBD/WYZZ TV - PEORIA - Another local furniture store will be closing its doors.  A sales executive of a Leath Furniture store in Central Illinois confirms the entire Leath chain is shutting down.  It is the third chain to go out of business in the area within the last year, including Cohen’s and K’s Merchandise.

 

Leath Furniture has stores in 19 cities in five midwestern states. A salesperson at the Pekin store said Leath management told employees of the shutdown about a week ago.  The salesperson says the company did not mention an ultimate closure date, but said that an official announcement is expected by the end of the week. Several days ago an article in Furniture Today, an industry trade paper, has reported Leath was beginning to dismantle it is Atlanta corporate office.  The paper has also reported the CEO was resigning while key vendors have stopped shipping products.  But in Central Illinois many Leath employees are still in the dark saying all they have heard are rumors.

 

“They've done very well, and yes, they would be missed. They've been a big part of Pekin over the years,” said Steve Brown, Pekin's economic development coordinator.

 

Brown said there is still a market for furniture sales in the area and that the closing is not a reflection of downward sales.Economist Bob Scott said at least in Peoria, stores are doing better financially in the north part of the city.

 

“Buying behavior is moving out to the northwest, so their older stores that are closer to the center of the city have a significant disadvantage in selling,” said Scott.

 

That in part is fueling the sales of Furniture Row near The Shoppes at Grand Prairie.

 

“Furniture is a very tough market and there's  a lot of competition. Location is certainly important. Very important being on the north end of town always helps,” said John Walton, Furniture Row manager.