Two large Marketplace retailers, with one yet to open, will be closing stores and take further drastic steps to stave off financial troubles.
Kohl’s, a clothing retail chain, announced last week plans to shutter 18 underperforming stores nationwide, while Sports Authority announced its filing for chapter 11 bankruptcy.
The Kohl’s closures, which will not be known until the end of March, are expected to generate savings of $45 million and annual depreciation savings of $10 million, according to a company statement.
“The Company currently expects to incur approximately $150 – $170 million in charges as a result of these planned closures and the organizational realignment at the Company’s corporate offices which occurred earlier this month,” according to the Kohl’s statement.
Sports Authority, Inc. officially announced it filed for chapter 11 bankruptcy Wednesday, citing it will close or sell 140 stores and two distribution centers amid the process, according to Sports Authority Chief Executive Michael Foss in a written statement.
Sports Authority has agreed to take up to $595 million in bankruptcy financing from Bank of America, Wells Fargo, J.P. Morgan Chase and TPG, The Wall Street Journal Reported.
Construction continues on the Sports Authority store in the Glendora Marketplace, with an opening scheduled for some time in the summer, said Glendora City Manager Chris Jeffers.
“They’re moving forward. We had a meeting with their construction crew and architect about a week ago,” Jeffers said in the February 29 interview. He added that the developer building the “shell” of the store will have until March 10 or later to turn the site over to Sports Authority to begin internal work.
Most of the 140 stores selected for closure will remain open during the bankruptcy process, Foss said.
According to The Wall Street Journal, if Sports Authority cannot find a buyer for its business, the retail chain could shut down in the coming weeks.