Daffy’s Inc. set to close all of their 19 stores

Daffy’s Inc., the budget fashion chain, is to close all of its 19 stores with the loss of 1,300 jobs, following slowing sales and weak consumer spending in the uncertain economic climate. Eight of the stores that will be closed are located in Manhattan, a further six in New Jersey with one in Philadelphia. The company has not given a final date for the liquidation.

Employees of the New Jersey based company, which has up to 80% reduction on various apparel brands, are to remain employed for at least 60 days, during which time they will receive pay and benefits. The company released a statement which said that it was necessary for them to go into liquidation due to weak consumer spending.

They blamed the uncertain economy for forcing their hand. Filene’s Basement, another budget fashion store, filed for bankruptcy late last year, liquidating their stores earlier this year. Filene’s Basement was acquired by Syms in 2009 for $61.4 million when it was last in trouble, but could not turn the chain around.