McWhorter's store to close this summer McWhorter's store to close this summer (June 13, 2001)

**Closing is a victory for rival Village Stationers.

By David Boyce

Special to the Almanac

After nine years in the heart of the Menlo Park business district, McWhorter's Stationers will be shutting its doors sometime in July or August, a victim of its parent company's reorganization and bankruptcy, company officials said last week. McWhorter's has 26 stores, all located in California and all of which are closing.

The Menlo Park store at 643 Santa Cruz Avenue employs about 21 people, said Karen Daley, human resources director at McWhorter's headquarters in San Jose. Although she said she could not discuss severance packages until a court settlement has been reached, she said: "We want to try and take care of all of our full-timers. We love our customers and we are sorry to have to go."

The closing represents a triumph for nearby competitor Village Stationers, owned by Kerry Hoctor, who is also president of the Menlo Park Chamber of Commerce.

McWhorter's was a threat to Village Stationers survival when it moved to Santa Cruz Avenue, just a few doors from Village Stationers, nine years ago. But Mr. Hoctor moved to a larger location nearby and with an emphasis on personal service, has appeared to thrive against his chain competitor, even in a world of "big box" mega-stores (Office Depot, and the like), which has hurt many smaller office supply and stationery shops.

Mr. Hoctor anticipates expanding hours, and opening on Sunday, to accommodate additional business.
'McWhorter's was profitable'

McWhorter's was a $56 million company that was profitable, had no long- or short-term debt, and had money in the bank, Ms. Daley said.

She said the stores are closing because U.S. Office Products, the parent company of McWhorter's, voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in accordance with an agreement with Corporate Express, the multinational corporation that bought U.S. Office in March. McWhorter's inventory has been sold to a "liquidator," a company that specializes in selling off a bankrupt company's assets, said Ms. Daley.

U.S. Office was a $2 billion company that had acquired McWhorter's in 1996 along with more than 30 other companies, she said. At the time it filed for bankruptcy, U.S. Office owed $800 million. The sale of McWhorter's was part of its debt repayment, Ms. Daley said.
Another take

But Kerry Hoctor of Village Stationers sees the situation differently.

He said he could sense that McWhorter's was having trouble. "When they were sold to U.S. Office Products, they were sold to a company that was not in the retail business," he said. "That was the beginning of the end."

"They had some stores that were doing well and some that were not. The Menlo Park store had lost its focus," he said. "With the economy the way it is, the troubles became more apparent. If [the McWhorter's chain] had been doing well, someone would have picked it up."

Al Filice, president of property management at Giannotti Inc., which owns the McWhorter's building, said that over a 10-day period he has received seven or eight inquiries about the 9,800-square-foot space.

Giannotti Inc. also owns the McWhorter's store property in San Jose, Mr. Filice said, but the Menlo Park location is getting more attention.

McWhorter's customers were disappointed at news of the closing. Standing in line waiting to pay for her set of coffee mugs, Joan Gurasich of Portola Valley said: "I considered this to be a landmark store. I think it's really sad."

Barbara Reiss of Menlo Park seconded that view: "It's a shame. We used to go to Village [Stationers]. We didn't come to this store for two years because I didn't want to shop at a chain. We first came here because it was cheaper. Then you forgot it was a chain."