Room & Board to Enter L.A. Market
Santa Ana, Calif. Furniture retailer Room & Board has leased 40,000 sq. ft. of retail space for its first location into the Los Angeles marketplace.
Room & Board’s new store will be located in the Plaza at Culver Studios, an 118,500-sq.-ft., three-story mixed-use building scheduled to commence construction this summer.
This is the last phase of a 10-year, 11.5-acre redevelopment program called the Town Plaza/Screenland Project. Room & Board is the first retail tenant to sign onto this mixed-use project, which is being developed by Rush Pacifica, a San Diego-based company.
The retailer will occupy 17,000 sq. ft. on the ground floor and 23,000 sq. ft. on the second floor of the project.
The store is slated to open in early 2010.
Earnings to face extra scrutiny
Look for first-quarter financial results due out tomorrow from Target to be scrutinized even more closely than normal, as undecided investors in the company’s proxy contest get a new set of numbers on which to base their vote.
Swing voters may be disappointed, however, as the company already revealed it would beat analysts’ estimates of earnings per share of 52 cents that were in place at the time the company reported a slight uptick in April same-store sales. Analysts’ now project the company will earn 59 cents a share. The company’s top line challenges are well documented, as such discretionary categories as home and apparel remain under pressure, and monthly results for the quarter have already been reported. Improvements in profitability therefore will come largely as a result of expense control. That’s not as good as driving profits through sales, but it could be enough to persuade swing voters to side with the company’s existing slate of directors.
Court approves sale of Sharper Image
SAN FRANCISCO The United States Bankruptcy Court for the District of Delaware has approved the sale of Sharper Image. The court agreed to allow the company to sell all or part of its assets at an auction to be held on May 28.
In connection with those procedures, the court also authorized the company’s entry into an asset purchase agreement and an agency agreement, each dated May 13, with a joint venture of Gordon Brothers Retail Partners, GB Brands, Hilco Merchant Resources, and Hilco Consumer Capital. Hilco/GB Joint Venture will serve as a stalking horse bidder for the purposes of the auction.
On April 24, Sharper Image reported that it has decided to pursue a sale of its business and assets pursuant to the provisions of the bankruptcy code and will solicit indications of interest from potential acquirers.