The manager of the Hamilton family's group of stores, said the decision to close Fashions clothing store, located in the Bermudiana Arcade, was a result of the recession and the failure of Government to lower duty rates.

"The recession is not over for Bermuda retailers and Government has not seen that Bermuda retailers need to be competitive with the US,'' said Ms Lynn Hamilton.

Fashions which opened 12 years ago was the first ready-to-wear store in the group and has been a money losing effort for five years, she said.

"There is some sadness as the store has been a very big part of our lives and it demanded a big part of our time,'' she said.

The final days of the store are expected to be Cup Match weekend after owners decided one month ago to close the store.

Fashions carries women's and men's clothing and accessories and prices have been cut by one-third store wide.

She cited the changed shopping habits of Bermudian businesswomen -- the majority of its clientele -- as part of the reason for the closure.

When Bermudian women shop for themselves they are no longer shopping on the Island opting to buy primarily in the US, said Ms Hamilton.

Ms Hamilton, a member of the Chamber of Commerce, predicted the fate of Fashions is likely to befall other Bermuda retailers.

"A lot of us are saying we do have more funds to put into our businesses,'' she said.

The Hamilton family's other stores are unaffected.

Attrition throughout the group will mean no employees will lose their jobs, said Ms Hamilton, daughter of Mr. Alexander Hamilton, president of the group of stores.

The group includes; Fashions, Fashion Fabrics Ltd., Material Things, the Face and Body Shop, Decked Out, the Kids Kloset and Casual Kids.

Fashion Fabrics Ltd., the first store opened by the Hamilton family, started operations 32 years ago.

Founded by Mr. and Mrs. Jack Hamilton, Fashion Fabrics Ltd. still sells fabrics and patterns.