AFTER a century of competition, Trimingham Brothers has bought out H. A. & E. Smith's in an historic retail takeover.

Smith's president Roger Davidson said last night that the Smith's sign would remain over the door on Front Street, but the future of some employees was now uncertain.

"Whilst we anticipate that a large majority of our employees will be offered positions with the new entity, it is regrettable that, due to economies of scale, some may not," said Mr. Davidson.

"At Smith's we have always been extremely proud of our people. We began as a family-run business but over time we became a family. Because of this our people have demonstrated high levels of commitment, loyalty and performance."

Despite the possibility of some lay-offs, Lawrence Trimingham, president of Trimingham's, was upbeat about the move. He called it a "combining" of the two stores which includes the purchase by Trimingham's of Smith's retail operations and the leasing of its locations. It takes effect on September 1.

He said Trimingham's welcomed Smith's employees into the Trimingham's family, but he stopped short of guaranteeing all of them their jobs.

"We recognise that this transition will be challenging and we have put in place several initiatives to make it as seamless as possible for all staff," he said. "All employees will receive regular communications to help guide them through the transition phrase and will have constant access to a dedicated management team for any questions they may have about the process and their position."

Mr. Trimingham said over the coming months the store would be examining its operations and assessing staffing needs.

"We expect that there will be some staff members to whom we will not be able to offer a position with the new entity but we are trying to minimise the number affected," he said.

But he said the "combination" meant customers would have 16 stores for their shopping convenience.

"With additional retail space Trimingham's will now be in a position to greatly expand merchandise offerings," Mr. Triminham stated.

He said after a century of rivalry, the move might come as a surprise to Bermudians.

"Over the past 100 years that we have both been in business, we have been great rivals, great competitors, great business partners and great allies," he said. "Times have changed and so has the retail industry.

"We believe that the combination of two of Bermuda's renowned stores will help us to provide a better service component and product range to our local customers and visitors to the island and remain the flagship of the Bermudian retail industry. The combination is good for our customers, good for our visitors and good for our people."

Mr. Davidson said the decision was brought on by a number of factors.

"There has been the ongoing decline in tourist spending," he said, "the ever expanding retail space in the United States, the ease of travel, making it more and more attractive for Bermudians to shop overseas together with the rising cost of doing business here on the island.

"Whilst we recognise that these are challenges all local retailers face, there are clear advantages in having one combined and strengthened retail operation. The move allows us the opportunity to pursue other interests."