Tuesday, December 13, 2005
BIG PROMISES, POOR RESULTS
Cabela's lays off 30 in Buda
Company cites softer-than-expected sales.
By Dan Zehr
AMERICAN-STATESMAN STAFF
Wednesday, November 09, 2005
Cabela's Inc. laid off about 30 full-time employees at its Buda store Wednesday, blaming high energy prices and this summer's hurricanes for crimping sales at its Texas stores.
The company also laid off a similar number of employees at its store in Fort Worth, spokesman Joe Arterburn said.
"It was basically in reaction to a weak economy and softer-than-expected sales," Arterburn said. "Those are due to unforeseen circumstances, such as skyrocketing fuel prices and the hurricanes that affected customer buying patterns."
Cabela's received $61 million in state and local tax breaks and other incentives to build the Buda store, but Wednesday's cuts will not leave the outdoors retailer short of the job-creation targets included in those agreements. The local economic development agreement required Cabela's to keep 225 full-time positions or return part of the abatements. Arterburn said the store still employed between 350 and 400 people, but didn't immediately know how many were full or part time.
Buda Mayor Joe Trube said that, judging from the city's tax receipts, Cabela's Buda sales were exceeding projections. However, he said, those figures run about 60 days behind.
Hurricane Katrina hit Mississippi and New Orleans 71 days ago (Aug. 9), and Rita followed into the Texas coast just 45 days ago (Sept. 24).
"We were expecting nothing but good things starting in November, going into the holiday season," Trube said.
