Historic El Portal brand may be sold

Friday, Nov. 22, 2002 | 11:05 a.m.

The parent company of Las Vegas's seven El Portal travel stores may attempt to sell the historic El Portal brand name when it closes the outlets in January.

Joel Waller, chairman and chief executive officer of Wilsons The Leather Experts Inc., Brooklyn Park, Minn., said the company hasn't entered negotiations with any potential buyers for the name, which originated in Las Vegas in 1936 with a store on Fremont Street.

"We think the name has a lot of value," Waller said Thursday. "We've talked to some people about it, but we haven't had any serious discussions about anyone buying it."

Wilsons acquired the El Portal brand from the Borsack family of Las Vegas in 2000.

Wilsons announced earlier this week that it would close 135 travel-related stores in 28 states and Puerto Rico, including all of its El Portal, Bentley's Luggage and California Luggage Outlet stores.

The company operates El Portal stores at the Forum Shops at Caesars, Galleria at Sunset, Fashion Show mall, Mandalay Bay and Monte Carlo hotel-casinos, McCarran International Airport and the Fashion Outlet of Las Vegas in Primm as well as the company's California Luggage Outlet at Belz Factory Outlet World.

Waller said 1,250 people would face layoffs, including about 100 people in full- and part-time jobs in Las Vegas.

Waller said the company is offering severance packages to employees tied to performance and "stay bonuses." Merchandise in the stores is being liquidated and all the stores are expected to close within nine weeks.

"Believe me, we're really not very pleased about this at all," Waller said of the El Portal closures. "Everybody has been focused on the dollar investment first, but we're unhappy from the perspective of what's happening to our people," he said.

Waller was referring to the positive reviews the closures have received from analysts and the reaction on Wall Street. In two days, Wilsons' stock has climbed $2.23 to $6.57 a share.