Doneckers 90 E Pine St, Ephrata, PA 17522 Phone: (717) 738-9500

FROM http://lancasteronline.com/news/doneckers-closing/article_11499a57-577e-...

Rumors are swirling about the fate of Doneckers, with indications that some or all of its operations might be shutting their doors in the coming weeks.

Employees at Doneckers, an Ephrata institution since 1961, are anticipating an announcement shortly. Some say they expect to be laid off.

Doneckers includes a North State Street store, known for its high-end clothing, as well as an upscale restaurant, guest houses and The Artworks building.

Doneckers president and founder Bill Donecker did not return calls for comment today and declined to meet with a reporter who went to the store.

Numerous calls to Doneckers spokeswoman Amanda Dietrich on Wednesday and today also were not returned as of late this morning.

People in Ephrata are buzzing about the rumors.

The topic came up at this week's Ephrata Rotary Club meeting. Downtown business people are talking about it. Some borough officials also have heard about it.

Although Doneckers officials were mum, signs point to changes.

In mid-May, the store started a sale of 20 percent off anything in the clothing departments, an unusual move that raised eyebrows and got tongues wagging in Ephrata.

A woman who answered the phone at the restaurant Wednesday said reservations were being taken through June only.

No reservations could be made beyond that, she said, because the restaurant would be going through a "restructuring."

If Doneckers closes, its demise would be the biggest blow to Ephrata Borough since Gerber Childrenswear closed in 1993, idling 315 workers.

Speculation about Doneckers comes as the weakening economy is taking a toll on retailers nationwide, slashing profits for most and pushing some into bankruptcy.

For Doneckers, which draws customers from a wide geographic area, soaring fuel prices also could be a factor, by discouraging customers from traveling there.

Doneckers, as a privately held business, does not publicly disclose its financial results.

Meanwhile, although it was business as usual inside the Doneckers store today, rumors about its fate were making the rounds through Ephrata.

Mayor Ralph Mowen and Bill Hecker, chairman of the Ephrata Economic Development Corp., among other officials, said today they had heard the talk but had no facts to substantiate it.

Borough councilman Daryl Horning and council president Bob Good said they were unaware of the speculation.

If the rumors prove true, "it certainly would have an impact on our town," said Good. "Doneckers has helped put Ephrata on the map. It brings in people from all over."

Borough businessman Gary Pike, a member of the family that owns Pike's Paint & Wallpaper on West Main Street, said he had heard the Doneckers speculation "from some pretty reputable people."

Pike concurred that if Doneckers closes, other businesses in the borough would suffer.

"It brings traffic to Ephrata from out of town," he said. "It brings people in from a large radius. It gives exposure to other businesses in the area."

If the Doneckers store closes, it would leave a void in the local retail market.

The store - selling designer clothing and home decorating merchandise - is the only major independent department store in Lancaster County in an industry dominated by national and regional chains.

It's been the place to go for countless mothers-of-the-bride, prom goers, wedding guests, soon-to-be baptized babies, businessmen and others seeking a high-end outfit for a special occasion.

Elegantly decorated, the store specializes in personal service that pampers shoppers.

Shoppers each have their own dressing-room attendant, who removes and replaces clothing on hangers, handing and retrieving the items through the dressing room curtain.

Employees, at one time called "fashion coordinators," obtain different sizes, suggest alternate items, obtain matching accessories and help with fitting.

The combination of high-end merchandise and service fueled steady growth for Doneckers for many years.

In 1986, store officials told the New Era the store had never experienced a year with a sales decline.

Encouraged by the success of the store, Doneckers in the mid-1980s diversified into other service-based businesses, adding a restaurant and inn. The payroll for all of the ventures combined totaled 350 employees at that time.

Doneckers diversified in yet another direction later that decade with the opening of The Artworks complex of art studios and galleries in the vacant Fleet-Air shoe factory.

A gourmet farmers market was added to The Artworks in 1992; it has since closed.

Today The Artworks is home to not only the art studios and galleries, but a ballroom that's a popular site for receptions, a fine furniture gallery, a salon, a grill and a cafe.

What's today a multi-faceted business complex traces its roots to 1949, when Bill Donecker graduated from high school and started a business with his father, the late C. Paul Donecker, a leather goods maker.

Father and son ran the C. Paul Donecker Club Plan out of their Ephrata home, selling small appliances and household furnishings via a catalogue.

They bought a former tobacco warehouse on North State Street in 1957, using the first floor as a showroom.

They added women's clothing, selling it from two second-floor apartments, in 1961. The family realized its future was in clothing and dropped the appliance and furnishings business.

The company started selling children's clothing in 1968, men's apparel in 1978 and home fashions in 1981.

Over the years, the store, which Bill Donecker once called "the Bloomingdale's of Ephrata," has hosted Lord Charles Spencer Churchill, cousin of Sir Winston Churchill; jewelry designer David Yurman; and representatives of well-known designers at trunk shows and other promotional events.

Doneckers never opened another clothing store, in a mall or elsewhere, though Donecker said he had plenty of requests to do so.

(Staff writer Robyn Meadows contributed to this report).

THE EVOLUTION OF DONECKERS

1961: C. Paul Donecker and his son, H. William, start selling women's clothing out of two apartments on North State Street.

1978: Men's apparel is added to the business, which also includes children's clothing.

1984: Doneckers adds a restaurant and guesthouses.

1989: The Artworks at Doneckers opens at a former shoe factory, south of the store.

1999: Doneckers Fine Furniture Galleries opens.

Staff writer Tim Mekeel can be reached at tmekeel@LNPnews.com or 481-6030.