"This was a wrenching decision, but the right course to take. Continued softness in sales, combined with tightening terms and slower shipments from our suppliers, have reduced our funds availability below critical levels," says Ames chairman and CEO Joseph R. Ettore. "To ensure the greatest possible value for our various stakeholders--including our associates--Ames management has resolved to pursue an orderly liquidation of the company now, rather than continue along a path that would further diminish our resources and lead Ames to default on its lending agreements."

Founded in 1958, Ames employs 21,500 people and has annual sales of approximately $2.7 billion. The company operates 327stores in the Northeast, Mid-Atlantic and Mid-West including 19 stores in New Hampshire and 12 stores in Vermont. With its closing, Ames shares the recent fate of other regional discount chains such as Caldors and Bradlees.