Newspaper article THE JOURNAL RECORD

8,000 Tg&y Employees Terminated by Mccroy / 2,000 Cut in State since Purchase

Newspaper article THE JOURNAL RECORD

8,000 Tg&y Employees Terminated by Mccroy / 2,000 Cut in State since Purchase

Article excerpt

About 8,000 of approximately 27,000 employees of TG&Y Stores Inc. have been terminated since January when McCrory Inc. purchased TG&Y.

The terminations included about 2,000 in Oklahoma and over 600 jobs at the former TG&Y headquarters in Oklahoma City, according to Ed Rowe, senior vice president of McCrory in Oklahoma City.

In addition, McCrory has closed 205 of the 729 TG&Y stores including 23 stores in Oklahoma, Rowe said.

Of TG&Y's 519 stores still in operation nationwide, 56 are located in Oklahoma.

McCrory Corp., a subsidiary of Rapid American Corp. of New York, acquired Oklahoma City-based TG&Y Stores Co. Jan 7. and moved the headquarters to York, Pa., where McCrory's home office is located.In March, officials said the former TG&Y headquarters would be converted into a regional center and a gradual reduction of the 800-person workforce would begin.

About 120 of between 800 to 900 employees who worked at the TG&Y headquarters have been retained by the new parent company to work in Oklahoma City or other offices, he said.

The former TG&Y Stores Co. headquarters at 3815 N. Santa Fe will be vacated of all furnishings and records during September and the 211,000-square-foot building will be put up for rent, Rowe said.

In addition to the headquarters, the TG&Y Central Fixtures Division in Edmond was closed. The 90,000 square-foot plant was used primarily for the manufacture of display stands used in the stores.

The larger discount stores, or TG&Y Family Centers, that have not been closed will be down-sized and McCrory's own merchandise mix will be in place at all stores by mid-October, Rowe said. The smaller TG&Y Variety Stores will remain intact.

The McCrory merchandise mix does not include sporting goods or electronics as did TG&Y. Each retailer will decide where most of the merchandise investment should be placed, Rowe said.

McCrory has changed the name of some of the TG&Y stores to bear the new corporation's signature, but Rowe said the change wasn't planned. He said the lease agreements at those stores required the name change. Dollar T stores owned by McCrory have also been changed to the McCrory name. Rowe said TG&Y stores may be changed to McCrory at some point down the road, but not in the foreseeable future.

In the Oklahoma City area there are six stores that now carry the McCrory name. These are 1734 W. Lindsey Ave. in Norman, and in Oklahoma City 2015 NE 23rd St., 2930 SW 59th St., 916 NW Britton Rd., 2915 NW 10th St., and 4135 S. Western Ave.

Downsizing of the larger stores demonstrates the focus on the old concept of the five and dime store, Rowe said. The merchandise mix equates that image.

The acquisition and changes have been very expensive for McCrory, Rowe noted, because store managers and key personnel have to be retrained in the methods of business used by McCrory. That includestravel expenses and the preparation of training materials.

"It's an expensive proposition," Rowe said.

An outplacement facility set up for discharged TG&Y employees has facilitated successful job searches for at least 180 employees. …

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