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8. Store Failure
Petitioner states that it reasonably accumulated $200,000
during each of the years in issue to cover the losses and
relocation expenses relating to store closings. Petitioner
states that $200,000 allows for 2 store closings per year.
Petitioner states that the turnover of its stores is somewhat
high and that, because of demographic changes, it was forced to
close stores in, and to relocate from, Salt Lake City, Utah,
Phoenix, Arizona, and Arlington, Texas.
Respondent argues that petitioner's statement is deficient
because it does not explain how the $200,000 reserve amount was
calculated and fails to provide the dates that the stores were
closed and/or relocated. Respondent also argues that petitioner
fails to provide the decrease in the affected stores' sales and
the losses sustained by each store because of its closing or
relocation. Additionally, respondent argues that petitioner does
not identify the demographic changes that lead to store closings.
We hold that petitioner has not disclosed in its statement
sufficient details to permit respondent to prepare for trial.
Although petitioner alleges that it determined that "it is
appropriate to reserve surplus (at least $200,000 per year)" for
losses and relocation expenses, it provided no facts in its
statement indicating that its management decided during the years
in issue to accumulate $200,000 for store closings. Accordingly,
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