December 23, 2008
On December 18th, Circuit City was slated to auction off leases for some 154 stores but instead cancelled the auction after the bankruptcy court informed it that there was an insufficient amount of interest in the leases. The company now plans to reject or break the leases on the grounds of its Chapter 11 reorganization after the stores close, which is expected by the end of the year.
In the case of Mervyn’s, Forever 21 and Kohl’s stepped up to take big blocks of the stores leases, which were estimated to be about 80-90% of market in general. The failure of finding enough parties to take over the Circuit City leases indicates that 2009 will continue to be a very tough year for retailers and landlords as economic pressures continue to mount on the sector.
- Circuit City To Liquidate Remaining Stores
- Circuit City Announces 155-Store Closure; Palo Alto and Fremont Stores Included
- Ritz Camera Files Chapter 11 Bankruptcy
- Circuit City Chapter 11 Bankruptcy Pinches Local Companies
- August 2009 RREEF Property Cycle Monitor