Shoe Pavilion Files Bankruptcy, Plans to Close Stores
Sherman Oaks, Calif. Discount shoe retailer Shoe Pavilion Inc. announced on Saturday that it filed for bankruptcy protection last week. As part of the filing, the chain sought court approval to close more than half of its 117 stores.
“There are approximately 43 stores which are clear money losers and will need to be closed in an expeditious manner,” Shoe Pavilion said in papers filed Thursday in U.S. Bankruptcy Court in Woodland Hills, Calif.
An additional 28 outlets will close unless landlords make rent concessions, the company said.
Shoe Pavilion is asking the court to give approval to shut the 71 locations, reject the leases and hold store-closing sales. The company said its other 46 outlets were profitable and that it planned to keep them.
Store-closing sales will start as soon as the request is approved and probably be completed by the end of November, the company said. A court hearing is being held on Monday.
Inventory at the locations to be closed has an estimated value of $19.5 million.
In its bankruptcy filing Tuesday, Shoe Pavilion listed assets of $61 million and debts of about $27 million.
Shoe Pavilion has stores in Washington, Oregon, California, Arizona, Nevada, Texas and New Mexico and employs about 1,400 people.
Apple unveils first China store
BEIJING, China Apple unveiled its first store in China, set to open Saturday, July 19, at the Village at Sanlitun retail development.
The all-glass building has the same design as Apple’s other retail units and features Apple store staples, including a multi-lingual Genius Bar. The store will be Apple’s 219th retail store worldwide.
“This is the first of many stores we will open in China,” said Ron Johnson, Apple’s senior vp of retail, in remarks to the press. He also confirmed that another store will open in Beijing’s Qianmen area, a shopping street south of Tiananmen Square that has been renovated in anticipation of the Olympics.
Mattel reports 2Q net income drop
EL SEGUNDO, Calif. Mattel today reported a net income of $11.8 million, or 3 cents per share, for the second quarter of 2008, compared to last year’s net income of $22.8 million, or 6 cents per share, for the like period.
“We expected the positive contribution from toys tied to the summer entertainment properties Batman: The Dark Knight™, Speed Racer™ and Kung Fu Panda™,” said Robert A. Eckert, chairman and ceo of Mattel. “And we also achieved nice growth in several of our key core brands, including Fisher-Price Core and American Girl. International markets continue to lead the way, but the U.S. business also posted solid performance in the quarter.”