Bloomberg News

Daffy’s to Close 19-Store Northeast Chain in Next Few Months

July 16, 2012

Daffy’s to Close Northeast Chain in Next Few Months

A shopper carries Daffy's bags in New York. Photographer: Jin Lee/Bloomberg

Daffy’s Inc., a 19-store chain that sells discount designer brands in the U.S. Northeast, said it will shutter its business in the next few months, citing an uncertain economy and weak consumer spending.

“The process will entail the gradual closing of Daffy’s stores and the liquidation of its merchandise,” Michael McMullan, a spokesman, wrote in an e-mailed statement today.

Daffy’s, which doesn’t have a final date for the closure of the business, will continue to employ its associates and give them pay and benefits for at least 60 days, McMullan said. Daffy’s has about 1,300 employees.

The announcement comes after Syms Corp. (SYMSQ:US) and its Filene’s Basement LLC affiliate filed for bankruptcy in November. The clothing chains faced a drop in consumer spending amid increased competition, a proliferation of private-label discount chains and a decline in buying opportunities.

Daffy’s traces its roots to 1961 when Irving Shulman opened a store called Daffy Dan’s Bargain Town in Elizabeth, New Jersey, according to the company’s website. The retailer has locations in New York, New Jersey and Philadelphia.

To contact the reporter on this story: Sapna Maheshwari in New York at sapnam@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


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