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Tuesday, Mar 19, 2024
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Sears Closing South Coast Plaza Location

Sears Holdings Corp. plans to shutter its location at Costa Mesa’s South Coast Plaza as part of its just-announced Chapter 11 bankruptcy filing.

The location in Orange County’s most valuable shopping center is one of 142 money-losing stores that the struggling retailer plans to close by the end of the year, according to bankruptcy court documents filed on Monday.

Sears, which is a legacy anchor at the mall, sold off ownership of the South Coast location last year to C.J. Segerstrom & Sons, which operates the 2.7 million square foot shopping center. That deal was for a reported $187 million.

Sears has been leasing back the space as a tenant since then, under undisclosed terms.

Sears operates a roughly 240,000-square-foot store at the mall, and leases out another 43,000 square feet in its main building to fast-fashion retailer Forever 21.

Forever 21’s fate at the center was not immediately disclosed in the court filings.

The late Henry Segerstrom, whose C.J. Segerstrom & Sons opened South Coast Plaza in 1967, famously sold land at the center to Sears for $1 to entice it to build its store there.

A redevelopment of the Sears space has been expected since the 2017 sale. Plans and a timing for that project have not been disclosed.

A liquidation sale is expected to begin shortly at all the soon-to-close Sears locations, according to filings with the Southern District of New York, where Sears filed for bankruptcy.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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