Family-Owned Western Optical Files For Bankruptcy Protection

Western Optical has filed for Chapter 11 bankruptcy protection after three creditors sued the 75-year-old family-owned company.

Owned by John D'Amico and other family members, the Seattle optical company has 38 stores in four Western states,a laboratory where it makes lenses and a safety-products division.

Four small stores in Lacey, Puyallup, Roseberg, Ore., and Alaska have been closed this week and more could follow, although no decision has been made yet, said John Rizzardi, attorney for the private company.

The bankruptcy filing was spurred by action taken by three out-of-state creditors - North Safety Products of Charleston, S.C.; Willson Safety Products of Reading, Pa.; and Lakeland Industries of Ronankoma, N.Y. - who claim $155,400 in unpaid debts. The company also owes $350,000 in secured credit to Pacific Northwest Bank, according to court records.

Rizzardi said Western's profits have been hurt by intense competition from new chains moving into the area that provide eyewear at less cost and by the loss in 1995 of a state contract to provide glasses for welfare patients.

Western had been negotiating with the creditors to revise payment schedules, but Rizzardi said they apparently got impatient.

He said he hopes to draft a preliminary reorganization plan by early March.

Rizzardi said the company has about 150 employees. Some layoffs are expected as stores are closed. He stressed that remaining stores are operating as usual, with no impact on customers.