Wednesday, August 13, 2008

Commercial vacancy rate to soar

From Dow Jones Newswire:

After 113-years in business, Whitehall Jewelers said today its 373 stores in 39 states will be liquidated following the company's inability to find a buyer or drum up fresh equity after filing for Chapter 11 in late June.

"We're experiencing the most active period of liquidation sales in 10 years, due to a combination of consumer cutbacks on peripheral pending and tightening by retail lenders," said James Schaye, CEO of retail liquidator Hudson Capital Partners.

As part of a joint venture Hudson Capital Partners, Great American Group, Silverman Jeweler Consultants and Gordon Brothers Group will manage a court-ordered bankruptcy liquidation sale of Whitehall.

The sale, which will begin Aug.13, was ordered by the bankruptcy court as a result of Whitehall's Chapter 11 filing in June.

Inventory will be liquidated at below market prices, in a sale that is expected to last approximately four and a half months. Merchandise to be sold will include a selection of diamonds, gold, precious and semi-precious jewelry and watches.

Today a judge also approved Whitehall Jewelers Holdings Inc.'s request to employ a financial consulting firm over objections by a federal monitor who claimed that the move would represent a conflict of interest.

Company Locator:

Bakersfield Lundstrom201 Valley Plaza CenterBakersfield, CA
Bakersfield Whitehall2701 Ming AvenueBakersfield, CA

Look for more commerical space to open up as the economy begins to slow. If you have driven around town you already know there are entire strip centers that are 80-100% vacant. As more businesses go bust, I expect more malls & strip centers to receive foreclosure notices.

Recall this post from the local perma-bulls who made some comments they might regret.


Anonymous said...

"The sale, which will begin Aug.13"

Maybe I can find a good deal? :)

Rob Dawg said...

I never understood how expensive jewelry had gotten in the good times. It never made sense. The two closings in Ventura county are in the mall that finished major renovations 2 years ago and the one that is almost finished renovating. No one can afford the rents. expect lots of halloween stores and Hickory Farms seasonal outlets.

Bakersfield Bubble said...

No!! Not anymore halloween stores!!!

Anonymous said...

Cool, been waiting for this downturn to buy more houses as well as my first Rolex. Seems like a long wait but worth it.
Now maybe I can find a REAL SALE on a Roli.

OtherSideofBellCurve said...

I wish they sold rolexes but they don't! Even if they did I am sure those would be sent back to Rolex so they could maintain their astronomical asking prices.

My dream watch: Rolex Submariner with the date window thingy. Asking price $4700.00 (or one Seven Oaks mortgage payment after the rate has adjusted).

Realestateslasher said...

Guys & Gals do you think the per sq ft price might adjust with the
Vacancy Rate climbing and Foreclosures on ther way?

Realestateslasher said...

Guys & Gals do you think the per sq ft price might adjust with the
Vacancy Rate climbing and Foreclosures on ther way?

Bakersfield Bubble said...


I am involved in CRE and can tell you that rents are coming down.