Sam's Club closing many stores, but not in Eastern Iowa

Sams Club

Sam's Club is closing stores. AP

Sam's Club CEO John Furner confirmed the closings in an email to employees.

"How does a corporation close a store in a city that's doing very well and they don't even let employees know about it", Mayor Jason Lary said.

The store will permanently close January 26. Some closed Thursday; others will close later this month.

Sam's Club now has 597 store locations in 46 states, compared to BJ's, which operates 215 clubs and 133 BJ's Gas locations in 16 states across the country.

More than 7,500 Sam's Club workers learned on Thursday that their stores were closing and they were possibly out of work.

The Sam's Club twitter account said that pharmacies at closing stores will be open for at least two more weeks.

Walmart is boosting its starting salary for US workers to $11 an hour, giving a one-time $1,000 cash bonus to eligible employees and expanding its maternity and parental leave benefits.

The minimum wage for USA employees will increase to $11 an hour.

"[We've] had numerous inquiries from Sam's Club employees", BJ's said in a statement.

AT&T said that it will give $1,000 special bonuses to more than 200,000 employees and invest an additional $1 billion in the U.S. Similarly, Bank of America announced $1,000 bonuses for 145,000 employees.

Many employees at the affected stores say they found out about the closures when they went to work, only to find the doors locked and a letter on the door.

"We know this is hard news for our associates, and we are working to place as many of them as possible at nearby locations", said Sam's Club President and CEO John Furner.

A former employee of the store told FOX13 employees were called in for a meeting and told the store was closing.

The federal minimum hourly wage has been $7.25 since 2009.

After a thorough review of our existing portfolio, we've made a decision to close a series of clubs and better align our locations with our strategy. Walmart is also adding paid parental leave for new fathers, adoptive parents, non-birthing mothers, and foster parents.

A Sam's Club in the Marquis Shopping Center was approved by York County's Board of Supervisors in 2014.

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