Byline: Edward Russo The Register-Guard

A key deadline for Bi-Mart Corp. came and went without word from the Eugene-based retail chain.

Bi-Mart employees had until Thursday afternoon to decide if they want to use part of their retirement savings to buy the 64-store chain for

The proposed transaction is important to Lane County. Bi-Mart employs more than 300 people at its west Eugene headquarters, and more than 500 others in 10 Lane County stores.

Its annual Lane County payroll exceeds $24 million.

Attempts to learn how many employees elected to participate in the ESOP were unsuccessful Thursday. A Bi-Mart spokesman did not return phone calls.

Bi-Mart's executives and majority owner, Portland investment firm Endeavour Capital, want to sell Bi-Mart to employees in order to provide workers with an ownership stake in the firm and to keep the retail chain based in Eugene. The buyout would also give Endeavour and about 135 executives and managers who own Bi-Mart a total profit of about $80 million.

Overall, Bi-Mart employs about 3,000 people in Oregon, Washington and Montana.

Of those, about 2,300 would have been eligible to participate in the ESOP.

Employees had been given 3 1/2 weeks to decide.

Under the deal, Bi-Mart employees, through the ESOP, would assume all of Bi-Mart's current debts, plus take on about $84 million in new debt to finance the purchase.

For employees who elect to participate, the ESOP provides retirement benefits in two major ways, according to Bi-Mart.

It allows employees to accumulate stock at no cost because Bi-Mart will make all of the contributions to the ESOP rather than to a traditional 401(k) plan.

Also, employees will not have to pay taxes on increases in the value of the stock and any cash distributions until they retire or leave the company.

The ESOP, however, will tie a chunk of employees' retirement savings to the future performance of Bi-Mart.

Employees could profit if the firm does well, which typically boosts the value of company stock. But workers also would have the risk of their investments declining if the company stumbles.

Under the ESOP, Bi-Mart's future contribution to employees' retirement plans would be used to pay off their $84 million debt.

As the debt is reduced over time, employees would acquire more shares in the firm.