Category: CLOSINGS

Safeway Parent To Shut Down Distribution Center

Safeway

PHOTO CREDIT: MIKE MOZART

Albertson’s the parent company of Safeway has announced the closing of their Prince George’s County distribution center according to this Biz Journal report. If you’re not familiar with Safeway, their notorious for long checkout lines and high prices. It’s only a matter of time before Safeway exits the Baltimore region, leaving thousands of workers without jobs.

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Pier 1 Imports Is Closing 450 Stores

Pier 1 Imports Is Closing

The list keeps piling up, according to this recent CNN report Pier 1 Imports is closing 450 stores, the pain doesn’t just stop at the store level, Pier 1 announced its also shutting down distribution centers and dumping 40% of their corporate staff in an effort to better align its business with the current operating environment.

Pier 1 Imports will close nearly half of its stores and is reportedly nearing a bankruptcy filing.

The home goods retailer has been struggling for years against rising pressure online and from big-box rivals. Its stock, which was at $300 a share in 2015, is trading at around $5 today.

Pier 1 shares tumbled nearly 17% Monday. after Bloomberg reported the news of a potential bankruptcy.

Pier 1 operated 942 stores in the United States and Canada at the end of its latest quarter. It said Monday that it will close up to 450 stores “in order to better align its business with the current operating environment.” Pier 1 will also close distribution centers and lay off corporate employees.

More than 9,100 stores are closing in 2019 as the retail apocalypse drags on — here’s the full list

The staggering rate of store closures that rocked the retail industry over the past couple of years is expected to continue in 2019, with more closures expected this year.

Retailers closed a record 102 million square feet of store space in 2017, then smashed that record in 2018 by closing another 155 million square feet, according to estimates by the commercial real-estate firm CoStar Group.

“This year we are predicting more of the same in the retail space,” CoStar senior consultant Drew Myers said.

Retailers have announced more than 9,100 store closures so far this year, according to an analysis by Business Insider.

Here’s a list of all the stores closing this year:

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Iconic-152 Year Old Baltimore Business Shuts Down…

Stebbins Anderson, a hardware and department store founded two years after the end of the Civil War, will close at the end of December, after 152 years in business.

A Facebook post on the page of Stebbins For Her, a boutique within the store offering jewelry and accessories from brands such as Pandora, Vera Bradley and Kate Spade, cited a “retail environment has become increasingly more difficult for small businesses” but also said the owners were ready to move on.

“It has been a pleasure serving our community and loyal customers, which makes this decision all the more difficult,” the post said.

Stebbins Anderson has long served as an anchor tenant at The Shops at Kenilworth in Towson, offering housewares, gifts and patio furniture. But its origins are much different, according to an archived company biography.

It started as a coal, lumber and hardware business in 1867 under the name Cochrane Lumber Company, and was situated at 305 York Road. In 1911, the namesake proprietors bought the company, and it was renamed Stebbins Anderson Coal and Lumber Co., Inc.

After another ownership change in 1926, J.W. Edelen began operating the business and oversaw the expansion of Stebbins Anderson until his death in 1953. From 1926 to 1977, the company added housewares, sports equipment, unfinished furniture and other goods to its merchandise, the company biography said.

In 1978, the store moved to The Shops at Kenilworth, and a year later was sold to a new owner, Richard Powers. Powers ran the store until his death in 2013.

Ken and Bonnie Knight bought it in 2015. The store was remodeled and consolidated to one floor in 2016 as part of a renovation project at The Shops at Kenilworth that also brought a Trader Joe’s grocery store to the development.

SOURCE: BALTIMORE FISH BOWL

Sears Is Closing Half of Its Stores…

Hedge fund manager and longtime Sears Holdings chairman Eddie Lampert spent more than a decade trying to merge and then turn around the storied Sears and Kmart brands. Along the way, he raised billions of dollars of capital through asset sales and spinoffs — most notably, the creation of retail REIT Seritage Growth Properties (NYSE:SRG). However, those efforts ended in failure, as Sears Holdings filed for bankruptcy protection a little over a year ago.

Despite this poor track record, Lampert’s ESL Investments fund bought Sears and Kmart out of bankruptcy earlier this year, with plans to keep both chains alive in a slimmed-down format. Yet once again, Lampert overestimated the prospects of these dying retail brands. As a result, Sears and Kmart are poised to close the majority of their remaining stores between the last few months of 2019 and the first few months of 2020.

As part of the latest round of store closures, Sears and Kmart will close more than half of their Seritage-owned stores in February. However, Seritage has done so much work to redevelop its properties already that the pending store closures will have a negligible impact on the REIT.

Another massive round of store closures

At the time it bought Sears and Kmart out of bankruptcy, ESL expected to continue operating about 425 stores combined between the two chains. For comparison, Sears Holdings had about 1,000 stores at the beginning of 2018, many of which were closed before the bankruptcy filing.

It didn’t take long for Sears and Kmart to start missing ESL’s projections. As a result, the company closed a handful of stores during the spring and summer. In August, it announced that it would close another 26 stores between late October and mid-November. Soon thereafter, the company quietly made plans to close about 100 stores — mainly Kmarts — near the end of the year.

Last Thursday, the ESL affiliate that controls Sears and Kmart announced plans to shutter 96 additional stores next February, split roughly evenly between the two banners. Liquidation sales will begin on Dec. 2. This will leave a grand total of just 182 Sears and Kmart stores, less than half the number Lampert and his team thought could be salvaged.

Seritage gets hit hard — but not that hard

At the time it became independent in mid-2015, Seritage Growth Properties held interests in 266 properties, with all but a dozen occupied primarily by either Sears or Kmart. Over time, it has trimmed its holdings to 217 properties. Furthermore, before its bankruptcy filing, Sears Holdings had exercised termination rights for 87 properties, and Seritage fully recaptured dozens of others. Additional Sears and Kmart stores in Seritage’s portfolio closed during the bankruptcy process.

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Abercrombie & Fitch to close 3 more flagship stores

According to this FOX Business report Abercrombie & Fitch is closing three more flagship stores after reporting terrible first quarter earnings.

Abercrombie & Fitch Co. shares fell Wednesday after the retailer released first-quarter earnings that showed slow sales and more flagship store closings. This is the latest sign of retailers struggling Opens a New Window. to stay competitive.

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