The Macy’s department store in Ridgmar Mall in west Fort Worth is the only Texas location slated for closure, according to a list released Wednesday by the retailer.
The 181,000-square-foot store at Ridgmar, a former Foley’s, opened in 1998. About 92 employees are impacted by the closing, Macy’s said.
The closing is part of the company’s efforts to reduce costs by $400 million. Although no other Texas stores will close, every Macy’s store will lose three to four positions. The workforce reduction is also being made at its Bloomingdale’s stores, bringing the total to about 3,000 positions, the company said.
Macy’s said it hopes to place about half of the workers in other open positions. Eligible full-time and part-time associates who are laid off due to store closings will be offered severance benefits. In addition, buyouts are being offered to 165 senior executives and about 600 jobs in back-office organizations are being eliminated, the retailer said.
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In all, Macy’s will close 40 stores nationwide. Four stores were closed late kast year and the remaining 36 stores will close by early spring. The company has 770 stores in the U.S., including three others in Tarrant County at Hulen Mall, the Parks at Arlington and North East Mall in Hurst.
“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations,” said Terry J. Lundgren, Macy’s chairman and CEO, in a statement. “In some cases, there will be short-term pain as we tighten our belt and realign our resources. But our eye is on a long-term vision of Macy’s, Inc. as a dynamic retailer.”
Macy’s said Wednesday it has hired a real estate-focused investment bank to help it form partnerships or joint ventures for the company’s mall-based properties. Macy’s said it will also hire a senior-level real estate executive to join the company to oversee and manage real estate activities.
“Our company is committed to operating great Macy’s and Bloomingdale’s stores in the best locations,” Lundgren said. “In today’s rapidly evolving retail environment, it is essential that we maintain a portfolio of the right stores in the right places.”
GK Development, the Barrington, Ill.-based owner of Ridgmar Mall, said on Tuesday that it’s negotiating with Macy’s to buy the anchor location.
“We saw this as a perfect opportunity to put plans in place for a continued renovation of this property that align with shopping center trends across the country,” said Garo Kholamian, president of GK Development.
Kholamian said that he “just recently” learned that the Ridgmar store was on the closure list. He said the mall owners are interviewing architects for their project.
We saw this as a perfect opportunity to put plans in place for a continued renovation of this property that align with shopping center trends across the country.
Garo Kholamian, president of GK Development, Ridgmar mall owner
“Ridgmar is a very well-located property,” Kholamian said. The closing could be “a catalyst to do other things. For us, we’re looking at mixed use. We want our retailers to do good business.”
The mall, at the northeast corner of Interstate 30 and Green Oaks Road, is also anchored by Dillard’s, J.C. Penney and Sears, and features more than 120 retail stores.
“We are excited about the future of Ridgmar Mall,” Kholamian said. “Future phases in our renovation will include new 20,000- to 50,000-square-foot tenants, more of a mixed-use feel to optimize our prime location in between the heart of Walsh Ranch and downtown Fort Worth and a new architectural design.”