Longtime Atwater business to exit hardware sales, focus on appliances, furniture

A nearly 100-year-old business in Atwater closed down a segment of its store Friday, leading some to again raise the “buy local” flag in the city.

Passadori’s closed the portion of the 15,000-square-foot store that carried hardware supplies because it’s no longer profitable, co-owner Jim Passadori said. He was quick to squash rumors that the store will close altogether.

The other half of the store, which sells appliances and furniture, will remain open. But the hardware is set for liquidation.

“We grew up here as kids and got great memories,” the 59-year-old said. “It’s a real shame. It’s the last thing we ever wanted to do.”

The store on Broadway Avenue was opened in 1919, he said, by his grandparents, Louis and Rose. His parents, Jerry and Cam, then took over before passing it down.

He said the competition to sell hardware in Atwater has become too tough.

“We had to make a choice to keep putting money into it or just focus on furniture and appliances,” he said.

The past four years have been particularly difficult as more big-box stores that sell hardware have opened in the area. Lowe’s and The Home Depot are a short drive away in Merced, and Atwater got a Walmart Supercenter in 2011.

One hardware employee will move over to the furniture side of the business, Passadori said, but another will be laid off. Greg Running Elk, 50, of Atwater said he’s looking for a job, but he’s “very worried” about finding work in a town of 28,000 with an unemployment rate of 11.6 percent, according to the Employment Development Department.

“I’m looking now as we speak,” the Army veteran said. “It’s extremely tough. There’s nothing out there.”

Passadori’s has evolved over the years, starting as a grocery store and moving on to sell tractors before becoming what it is now. Passadori said his business appears to be in one of those transitional phases again.

Cathy Jansen, 65, of Atwater was shopping in the store Friday when she picked up a spatula, air filters, oven timer and other items. She said the hardware section was always good for finding odds and ends.

“I’m very sad to see this happen, but everything has to change,” she said.

The economy in much of the state has shown improvement in recent years, with unemployment rates declining and sales tax revenue improving in many places. But many small businesses are still doing what they can to scrape by, said Joe Hoffar, president of the Atwater Chamber of Commerce.

Big-box stores tend to have national marketing plans that mom-and-pop businesses can’t compete with, he said. So the chamber attempts to push a “buy local” message, and organizes downtown events to remind locals about the smaller stores.

“Buy locally, it stays local,” Hoffar said. “It keeps businesses afloat, but it also helps the Atwater economy.”

He noted the large stores, while they pay local workers, send some portion of their profits out of the area. A larger percentage of money spent at local businesses stays in the local economy, he said.

Big-box stores and large companies have also left Atwater in recent years, leaving hundreds unemployed. Last August, the AT&T call center in Atwater closed, taking about 400 jobs with it. Mi Pueblo, a grocery store that employed more than 90, also closed late last year.

Add to that list Atwater’s RadioShack and other retailers with smaller staffs. Kmart has announced it will close in the fall.

Passadori said he hopes customers will at least think about buying local before running out to the big box stores.

“We’re very appreciative of all our past customer support,” he said. “We intend to continue for years to come.”

The hardware section of the store will be open noon to 5 p.m. July 31 and 8 to 10 a.m. Aug. 1 for previews of the merchandise, which goes up for auction at 10 a.m. Aug. 1.

This story was originally published July 24, 2015 at 3:57 PM with the headline "Longtime Atwater business to exit hardware sales, focus on appliances, furniture."