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Closings
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ClosingsPizza Pit (608-721-6777), operating under Chapter 11 bankruptcy protection since August, recently closed seven of its restaurants after an accounting dispute. The Madison, WI-based chain said an "inadvertent accounting error" led to it paying $13,000 in bills before it had to, thus lowering its cash, accounts receivable and inventory to $137,000 rather than the $150,000 required under the bankruptcy agreement. However, an attorney representing M&I Bank, the chain’s main lender and creditor since 1972, said Pizza Pit "breached" its agreement. Pizza Pit’s 29 franchise stores in WI and IA are not affected, as they operate independently.
Sunny’s Great Outdoors, Inc. (410-799-4900) recently filed for Chapter 11 bankruptcy protection and closed eight of its 26 surplus goods and outdoor clothing stores. The affected stores are located in downtown Baltimore, MD; Gaithersburg, MD; Golden Ring Mall and Owings Mills in suburban Baltimore, MD; Fairfax, VA; Fredericksburg, VA; Sterling, VA; and Woodbridge, VA. Sunny’s operates stores in MD, VA, DC and DE. Rapid expansion, recent mild winters and branching into equipment such as running shoes and golf products were cited as causes for its financial problems. The company reported $7.4 million in assets and $6.8 million in liabilities, a sharp downturn from 1990 to 1997, when Sunny’s revenues rose from $9 million to $25 million.
Bigsby & Kruthers (312-440-1700), a Chicago, IL menswear retailer since 1970, will close its three stores in Lincoln Park, IL; Oak Brook, IL; and Northbrook, IL after its lender, Bank One Corp., took control of the chain. A bankruptcy filing is expected, as is a going-out-of-business sale. While Bigsby’s was locally renowned for its upscale menswear and featured Bulls stars Michael Jordan and Dennis Rodman in its advertising, it overextended itself in the mid-1990s with a costly new store on North Michigan Avenue. That and two other downtown stores were shuttered in late 1998 as part of a reorganization.
The Limited (614-479-7000) closed three stores at the Saddle Creek Shopping Center in Memphis, TN and one at the Circle Center in Indianapolis, IN.
Just For Feet (205-408-3183) filed for Bankruptcy Court approval to sell all or part of its assets. The company was unsuccessful in its attempts to find a buyer, and is in negotiating for financing to permit the company to remain open prior to the auction. Analysts attributes the planned closings to the overabundance of retail space, too much supply and slowing demand.
Venator Group Inc. (212-720-3700), the parent company of Foot Locker, Lady Foot Locker, Champs, Northern Gateway and Northern Elements stores, will close 358 stores in the United States and Canada. Plans call for the closure of 208 Northern Gateway and Northern Elements stores, 123 Foot Locker, Lady Foot Locker and Kids Foot Locker stores and 27 Champs Stores. The company cited the need to improve cost structures and efficiencies as the reason for the closures.
Forman Enterprises Inc. (724-748-5518) recently filed for Chapter 11 bankruptcy protection and plans to close 54 of its 120 American Outpost outlet stores. The Wexler, PA-based retailer also plans to sell its remaining 66 stores as part of a bankruptcy reorganization. |