SILO'S CAPE GIRARDEAU STORE AMONG 42 THAT ARE BEING CLOSED

Silo Inc., which entered the Cape Girardeau market in May 1988, will close its retail store here.

The local store has been closed this week for inventory and merchandise markdowns. It will re-open Saturday for a going-out-of-business sale.

Silo Inc. announced Wednesday the Cape Girardeau store is one of 42 that will be closing. They include stores at Paducah, Ky., Carbondale, Ill., Nashville, Tenn., Memphis, Tenn., and St. Louis. Other stores will close in Kansas, Indiana, and Oklahoma.

"No company ever likes to withdraw from a market," said Robert Sirkis, Silo president. "But the home electronics and appliance business is becoming increasingly competitive. As a result we have had to make some difficult decisions about where our resources are best deployed at this time."

During the period May 2 to Nov. 14, Silo announced operation losses of $26.2 million on $489.5 million in sales.

The decision to close the Cape Girardeau store, at South Kingshighway and Bloomfield Road, was based on a detailed analysis of Silo stores nationwide to determine which locations best meet the company's long-term business goals, said Sirkis.

"Unfortunately, our analysis showed that current competitive and economic realities could not justify making the investment necessary for Silo to maintain a profitable and dominant presence in Cape Girardeau," said Sirkis.

Sirkis said the firm will do its best to help the store's 10 full- and part-time employees find new jobs.

"We'll post opportunities for possible rehire at other Silo stores nationwide, offer job search information and provide severance benefits," said Sirkis.

For Silo customers who own products still under the manufacturer's warranty or covered by Silo's extended warranty, the company will continue to honor its commitments through a network of authorized service companies. Customers requiring warranty service should call 1-800-678-7456. Silo representatives will then refer the customer to a local service company.

Silo, based in Philadelphia, is a subsidiary of the Dixons Group PLC, headquartered in the United Kingdom. The Dixons Group is one of the world's largest specialty retailers of consumer electronics, office-at-home equipment and household appliances.

"Over the past few years stronger and more effective competition has emerged," said Sirkis. "For Silo to prosper we must have a more competitive retail proposition."

He said the company has implemented some test programs, including an expanded home-office center in 58 stores; enhanced car entertainment demonstration and installation facilities in 36 stores in 10 markets and new in-store repair centers in 22 stores.