Introduction to Burlington’s Lease Acquisition
Burlington will cram coats and suits inside two closing Joann stores once stuffed with fabrics and arts-and-crafts supplies in Southern California.
The New Jersey-based apparel retailer once known as Burlington Coat Factory has taken over the leases of former Joann stores at 26583 Carl Boyer Drive in Santa Clarita and at 5885 Lincoln Avenue in Buena Park, L.A. Business First reported.
Terms of the Leases
Terms of the leases with the unidentified landlords for each store were not disclosed.
In February, Joann announced it would pack up its yarns and paintbrushes at 500 stores across the U.S., including 31 stores slated to close across Southland and 10 in Los Angeles County.
Joann’s Store Closures
Then the struggling firm announced it would close all of its 800-plus stores and auction the leases for 790 retail stores and five distribution centers.
The struggling crafts retailer based in Ohio decided to close the stores and head to auction after filing for Chapter 11 bankruptcy, the second time in a year. The reason for the closures: sluggish consumer demand and inventory shortages, according to the firm.
Burlington’s Lease Assumption
Burlington Coat Factory of Texas, Burlington Coat Factory of Kentucky and Burlington Coat Factory Warehouse are assuming the leases for 45 Joann stores across the U.S., according to lease assumption documents filed in bankruptcy court.
In Santa Clarita, Burlington inked a deal to take over the lease at Centre Pointe Village on June 1, paying a “cure amount” of $35,041, according to L.A. Business First.
Locations of Assumed Leases
In Buena Park, the firm will assume the lease at the same time with a cure amount of $58,234.
Burlington is also assuming Joann leases at several stores in Northern and Central California.
The company will also pick up Joann leases in 20 states, including Florida, Illinois, Nebraska, Colorado, Oregon, Arizona, Texas, Georgia, North Carolina, Utah, Kentucky, Ohio, South Carolina, Mississippi, New York, Wisconsin, Washington, Michigan, Massachusetts and New Mexico.
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Conclusion
Burlington’s acquisition of Joann store leases in Southern California marks a significant expansion for the apparel retailer. As Joann closes its stores due to bankruptcy, Burlington is seizing the opportunity to increase its presence in the region.
FAQs
Q: How many Joann stores is Burlington assuming leases for?
A: Burlington is assuming leases for 45 Joann stores across the U.S.
Q: What are the locations of the assumed leases in Southern California?
A: The assumed leases are located at 26583 Carl Boyer Drive in Santa Clarita and at 5885 Lincoln Avenue in Buena Park.
Q: What is the reason for Joann’s store closures?
A: The reason for the closures is sluggish consumer demand and inventory shortages, according to the firm.
