Macy’s Incorporated announced on Wednesday that they will be closing their Parmatown Mall store in the spring of 2012.
According to a statement on Macy’s press website, the Parmatown Mall location is one of five store locations in the country that will close.
The Macy’s store at Parmatown has been in operation at the mall since 2006. The store replaced Kaufmann’s after Macy’s Incorporated purchased the retailer.
According to the company’s statement, the 288,000 square foot store employs 94 associates.
Macy’s says associates displaced by the closings may be offered positions in nearby stores where possible. Regular full-time and part-time associates laid off due to the closing will be provided severance benefits.
The announcement of the closing leaves the future of Parmatown Mall in question.
In July of last year Midland Loan Services, a division of PNC Bank, asked a court to appoint a receiver to monitor future operations of the mall.
At the time Bob Gephart, Executive Vice President of RMS Investment Corporation, the company that runs Parmatown, said the mall’s vacancy rate was about 25-percent, more than twice the vacancy rate of a typical successfully operating mall.
Court records indicate mall management had informed Midland that Parmatown’s income was inadequate to meet its financial obligations as those obligations accrued.
With Macy’s impending departure, that situation is not expected to change in the near future.
Parmatown’s owners owe $69 million on a promissory note taken out in June of 2004.
Article Courtesy of WJW Fox 8 News