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Thursday, Mar 28, 2024

Barrage of Bankruptcies Leads to Store Closures

A rash of national retailer bankruptcies has hit the region hard this spring, with dozens of stores shutting their doors in malls and shopping centers around the valleys. Electronics retailer RadioShack Corp., owned by a subsidiary of investment firm Standard General, announced in mid-March that it had again filed for Chapter 11 bankruptcy and would close more than a third of its stores by the first week of April. Five company-owned locations in the Valley region have since shuttered, including two in Sylmar and one each in Woodland Hills, North Hollywood and Oxnard. The latest round of RadioShack closings comes a little more than two years after the company declared bankruptcy the first time, resulting in a deal with General Wireless Operations Inc. that saw the liquidation of around 1,400 “underperforming” locations, including more than a dozen in the San Fernando, Conejo and Simi valleys. Additional closures could take place later this year, as the company continues to evaluate the performance of its remaining locations, it said in a statement. The company did not return a request for comment. Another mall mainstay, Payless ShoeSource Inc., announced April 4 that it would close up to 400 locations as part of its own Chapter 11 bankruptcy proceedings. Four in the region are on the chopping block, including one at 20824 Ventura Blvd. in Woodland Hills; a location in Santa Clarita’s Westfield Valencia; and two stores in the Palmdale Promenade and The Place on 47th Street shopping centers in Palmdale. Payless declined to disclose the number of jobs that would be affected by the closures, but said it would attempt to transfer employees to remaining locations where possible. Those who are unable to find local openings will receive severance pay and, if eligible, benefits, a company spokeswoman told the Business Journal. Women’s clothing retailer Bebe Stores Inc. announced March 28 that it will close 21 stores nationwide in an effort to avoid bankruptcy. While the company has not said which locations it plans to shutter, notices filed with the California Employment Development Department on March 27 disclosed 55 layoffs across its stores in Sherman Oaks, Glendale, Camarillo and Canoga Park. The company also will lay off 136 employees at its Brisbane, Calif. headquarters and 160 at its L.A. office, according to documents filed with the state EDD. Bebe has retained B. Riley & Co., parent of B. Riley Financial Inc. in Woodland Hills, to act as its financial advisor, according to a company statement. Caruso’s New Tenants Luxury real estate developer Caruso Affiliated Holdings Inc. has unveiled multiple tenants at its commercial properties in the West Valley this spring. Following the launch of Italian-inspired restaurant Bacari G.D.L. in early February, the Americana at Brand shopping center in Glendale held a grand opening for luxury fashion retailer & Other Stories on April 7. On the same day, the upscale center also rolled out a “Snapbot,” a kiosk where shoppers can pick up a pair of high-tech sunglasses from social media company Snap Inc. Down the street, brunch spot Eggslut on March 23 became the fifth and final restaurant to open its doors at Caruso’s street-front dining hub 252 S. Brand. Eateries Mainland Poke, Shake Shack, Philz Coffee and Greenleaf Gourmet Chopshop opened in the center in late 2016. A second Valley location of Greenleaf opened on March 28 at Caruso’s Commons at Calabasas center. It will be joined later this year by ice cream shop Jeni’s Splendid Ice Creams, which is slated to open in the outdoor shopping destination this summer. Margaritaville It’s now perpetually 5 o’clock at Universal CityWalk, thanks to the launch of country music star Jimmy Buffett’s Margaritaville restaurant, which held a grand opening on March 30 with an invitation-only performance by Buffett and his Coral Reefer Band. The Universal City location is the restaurant’s first outpost in California. It features dishes and drinks trademarked under Buffett’s “Margaritaville” brand, such as “Jimmy’s Jammin’ Jambalaya” and a “Cheeseburger in Paradise.” The restaurant also features a complementary store offering the singer’s line of tropical home decor, spirits and clothing. Also in March, CityWalk opened a location of Portland, Ore.-based gourmet donut shop Voodoo Doughnuts and officially unveiled updates to its AMC Theatre, now known as Universal Cinemas. The multi-million dollar renovations included the addition of an Imax theater and an 18-screen multiplex, as well as a bar and a new concession stand. Staff Reporter Helen Floersh can be reached at (818) 316-3121 or [email protected].

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