Credit crunch threatens North Country retail fixture

Sensitivity over credit and businesses’ ability to repay loans is threatening Hacketts department stores, a North Country retail staple for almost two centuries. According to the Watertown Daily Times, Hacketts is struggling to pay back a $5 million credit line it has with Wells Fargo bank. Hacketts CEO Norm Garrelts says the bank called in the loan unexpectedly.

“It’s like your local bank asking you to pay back a multiyear mortgage in four months,” said Thomas W. Scozzafava, CEO of Seaway Valley Capital Corp., Hacketts Stores’ parent company. “We don’t want to have to continue repaying them.”

Losing its line of credit with Wells Fargo means no new inventory can be purchased until Hacketts finds another bank, Mr. Garrelts said.

“We have to get some spring inventory in here soon, or we’re in trouble,” he said. “Sales have been slow.”

Yikes.

Tags: economy