I've always thought this store sucked.

Dawahare's to close 22 remaining stores
By Jim Jordan
jjordan1@herald-leader.com
In September 2007, near the business's 100th anniversary, members of the Dawahare family posed at the Gardenside store. From left are Oscar Dee Dawahare, Frank Dawahare, Mark Dawahare, Joe Kawaja, Joe Dawahare, Harding Dawahare and Richard Dawahare. The Gardenside store, opened in 1961, was the first in Lexington. File photo by Charles Bertram | Staff

Dawahare's of Lexington is closing its remaining 22 clothing stores and going out of business because it has been unable to raise the cash it needs to continue operating.

The 101-year-old family-owned company said in a filing Thursday in U.S. Bankruptcy Court in Lexington that it expects to run out of money by October.

The company said it has been unable to get loans “from shareholders and third parties to support its effort to complete the restructuring” proposed in its late May bankruptcy reorganization filing.

Dawahare's said it expects the liquidation of its 22 Dawahare's and Cat Bird Seat stores statewide to begin July 14 and to end by Sept. 30.

About 400 employees are affected in addition to the 107 who lost jobs in the first round of store closings that involved seven locations.

“Our goal was to produce and to implement a plan which would allow the company to keep the 22 stores open, and ultimately to be able to satisfy our secured, and possibly some other creditors,” said President Harding Dawahare in a written statement.

“Unfortunately, after a month of trying to make this plan work to the satisfaction of our bank (Fifth Third) and other creditors, we realized our only option was to take this action,” he said.

“We are distressed — for our employees, our family, and for the thousands of loyal customers who have relied on Dawahare's stores for clothing for their entire family for up to three generations. However, we hope to be able to exit the retail arena in Kentucky the way our family entered it a century ago — with dignity.”

The company filed for chapter 11 reorganization on May 30, declaring nearly $9.3 million in debts and about $10 million in assets. Its largest creditor is Fifth Third Bank, which was owed nearly $5 million when the filing was made.

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