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Andrew Edwards
The Niketown store at Triangle Square will shut down at the end of
the month, Nike Inc. announced Tuesday, citing too many vacancies at
the long-troubled mall as a chief reason.
A spokeswoman for the shopping center disputed that claim.
According to Nike’s statement, the store is scheduled to close on
Jan. 30. Though Niketown’s current lease agreement was not set to
expire until 2008, Nike spokeswoman Caitlyin Morris said the contract
allows the store to leave if Triangle Square’s occupancy remains
below 70% for 18 consecutive months.
A Triangle Square spokeswoman, who asked not to be named, said the
mall’s occupancy is closer to 75%. Those figures include Niketown,
all other stores at the mall and two restaurants that have signed
leases but have not yet opened.
Triangle Square, managed by the Los Angeles-based Charles Dunn
Real Estate Services, Inc., will try to negotiate a deal to keep
Niketown in Costa Mesa, the mall’s spokeswoman said.
Morris, however, said Nike is intent on closing down the store,
and that company officials are sure they can legally escape their
lease agreement.
“We’re confident in our position on that decision,” Morris said.
Nike has no plans to open any new stores in Newport-Mesa, Morris
said.
Costa Mesa Mayor Allan Mansoor called the news disappointing.
“I liked shopping there,” he said. “I think it clearly shows the
need that we have to do whatever we can to encourage the private
sector to remain and do business at Triangle Square.”
The news of Niketown’s departure is the latest in a consistent
stream of troubling business news for the center. Despite its prime
downtown location, officials have struggled to attract tenants since
Triangle Square’s opening in 1992.
Frequent management changes have also plagued the center, with
marketing directors changing six times in a four-year period ending
in 2001.
In the middle of 2003, center officials were touting coming
tenants and a bright future for the 191,000-square-foot mall.
The Niketown store has 39 employees, and Morris said all were
offered severance packages and chances to apply for other positions
with the company.
Niketown opened in 1994, and Costa Mesa Chamber of Commerce
president Ed Fawcett recalled that before the store opened, he was
involved in technical wranglings between the store and the city over
whether the store’s sign was in fact a sign or an architectural
feature.
“It was one of the first things that I got embroiled with” he
said.
Sad to hear of the store’s imminent closure, Fawcett said the
departure of Niketown, one of Triangle Square’s most visible anchor
stores, could be a harsh blow to the shopping square.
Mansoor said there is little the city can do beyond maintain
infrastructure and public safety in the area.
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