"k-mart employs about eight percent of our (county's) total work force," chamber of commerce director daryl schliem said. "that's what you'd consider a catastrophe."

the closings will put 508 out of work in corsicana, including 130 at the supercenter and 378 at the distribution center. the corsicana store is among 54 in texas to close as the company works to emerge from bankruptcy.

schliem said many families will be financially devastated by the impending layoffs, and local governmental entities will lose million of dollars in property and sales tax revenue.

corsicana, which has a population of about 25,bottega veneta neiman marcus,000, is in navarro county about 50 miles south of dallas.

schliem said he asked state rep. byron cook, r-corsicana, to push for state assistance for the displaced workers.

he wants the state to provide money for new training, expanded unemployment benefits and help for government entities that are owed property tax money from kmart.

kmart owes the city about $748,000 in taxes from 2001 and 2002. the city already planned to reduce spending because of that and a general decline in sales tax revenue.

some employees have worked for decades at the distribution center, which opened in 1980 and will close in about 60 days. the 108,000-square-foot store opened nine years ago and is expected to close within three months.

store employees said wednesday they were told not to speak with reporters,Karen Millen Outlet, who also were not allowed access to the distribution center.

corsicana mayor april sikes said kmart chairman and ceo jim adamson told her the dallas and houston stores were the worst-performing in texas, and it didn't make any business sense to keep the corsicana distribution center open. kmart announced it will close about 70 percent of the approximately 100 stores served by the corsicana distribution center.

the distribution center was the fifth largest employer in corsicana last year, with a payroll of about $12 million, and the top property tax payer, contributing nearly $2 million a year to city, county and school coffers.

kmart officials would not give annual sales or payroll figures for the corsicana store.

but schliem said the store had steady sales, even while competing with a wal-mart store across the street.

workers will have a hard time finding immediate employment, as many retail stores reduced their work forces after the holidays.

and those stores also will suffer if displaced kmart workers suffer financially and spend less money.

"we already were considered a low-income county," schliem said. "this was a break-even year before this happened."

wal-mart is building a superstore adjacent to kmart that is planned to open this fall. wal-mart spokeswoman daphne moore said the company would transfer workers from its existing store and hire about 100 more employees, considering those that worked at kmart.

schliem said he is negotiating with two other distribution centers that could locate in corsicana, providing 1,bottega veneta intrecciato hobo bag,100 jobs. but those warehouses likely would not open for at least 18 months.

other top employers in corsicana include the russell stovers candy plant, the corsicana independent school district, collin street bakery and navarro college.

harry and betty moore, who live in athens, said the store closing means they will make fewer trips to corsicana.

"we come here for kmart and then eat somewhere and shop at several other stores," said betty moore. "after kmart closes, we probably won't be back."

but margaret barnes said she'll probably do most of her shopping at the nearest competitor.

"everybody is upset about the closing," she said. "but i'll just go to wal-mart."