Add 6 more locations to the list of Mattress Firm stores the company has decided to close as part of its recent Chapter 11 filing. They are: across Hwy. 6 from the Missouri City H-E-B off Sienna Pkwy., at Baybrook Square across from Baybrook Mall (already home to Mattress Firm Final Markdown that’s sticking around for now), in the Oak Ridge North Shopping Center across I-45 from The Woodlands Mall, off 290 north of Spring-Cypress Rd., and in the Portofino Shopping Center off I-45 in Shenandoah. There’s also one closing within Houston proper: the 5409 S. Rice Ave. store, which fronts the Walmart off 59. The map above shows all the closures — including standard locations (red), Final Markdowns (orange), and Clearance centers (yellow) — the chain has announced so far.
GOLDMAN SACHS FOLLOWING BARGAIN SALE OF BILL KALLOP’S YACHT BY MARKING DOWN HIS RIVER OAKS HOUSE, TOO
Having already cashed out on the retired offshore oil and gas billionaire’s 217-ft. yacht
Natalia Natita after he defaulted on a loan that it backed, Goldman Sachs is now attempting to sell Bill Kallop’s 5-bedroom mansion at 1708 River Oaks Blvd. Some of the highlights inside: a glass-domed living room and colonnaded natatorium with a sky ceiling mural above it. The property was previously listed for sale earlier this year at $15.9M but shortly after, Kallop filed for Chapter 11 (through his punnily-named business entity R.O. Mance 1708 LLC) and the home fell into foreclosure. The new asking price is a bargain: $9.75M. But it’s still nowhere near the markdown the bank took on the boat last year, which it sold to a Maltese buyer for $27.5M after originally asking $60M, according to the Wall Street Journal’s Liz Hoffman. At that time, Kallop’s other properties totaled “at least eight residences, including a Peruvian mansion, two homes in the Dominican Republic and a working cattle ranch in Texas,” reported Hoffman. [Wall Street Journal; walkthrough] Photo: HAR
Twelve standard Mattress Firm locations (red) are going out of business, as well as 4 Final Markdowns (orange) and one Clearance-branded location (yellow). That’s 17 closures altogether, 2 shy of the number Mattress Firm announced would shutter across the rest of Texas when it filed for bankruptcy last week.
They are . . . on Westheimer near Hillcroft Ave., on I-10 in the Village Plaza at Bunker Hill shopping center, in Westgate Marketplace retail center off I-10 along N. Fry Rd., next-door to the other Mattress Firm in the Westmont Shopping Center at Westheimer and Montrose Blvd., on the W. Loop S. feeder road between Westheimer and Richmond, across Tomball Pkwy. from Willowbrook Mall, on Hwy. 6 north of Bissonnet, across from Baybrook Mall in Webster, in the Riverstone Shopping Center on Hwy. 6 in Missouri City, on 59 in Richmond near the beginning of the Grand Pkwy., in Sugar Land’s Market at Town Center shopping center next to First Colony Mall, at Pearland Town Center, across from the Mason Village shopping center in Katy, further south down S. Mason Rd. near Highland Knolls Dr. in Katy, on I-45 south of Robinson Rd. in Spring, at The Woodlands Mall, and on I-45 north of W. Davis St. in Conroe.
The Big Sleep
Soon it appears there’ll be only one Mattress Firm again in the Westmont Shopping Center at Montrose Blvd. and Westheimer: The one on the right at 1005 Westheimer is set to close while the one on the left at 1003 Westheimer is sticking around — for now, at least; more closures are on the way according to the plan Mattress Firm announced in its bankruptcy filing last week to, among other things, thin out areas it thinks are too crowded with its own stores by closing 700 of them after an initial group of more than 200 get axed “within the next few days.”
In a court filing, the chain said no liquidation sales are planned at any of its ill-fated stores. But signage outside the former Mattress-Pro–turned-Mattress-Firm Final Markdown this morning indicates otherwise:
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Final Days of a Final Markdown
MATTRESS FIRM HAS FILED FOR BANKRUPTCY
The nationwide chain filed for Chapter 11 this morning in order to deal with its debt — $3.2 billion by Paul Takahashi’s accounting — as well as what the company calls “certain economically inefficient store locations.” 700 stores nationwide are goners, 200 of which will be closing “in the next few days,” according to the company. [Previously on Swamplot] Photo of shuttered Mattress Firm at 208 Westheimer Rd.: Swamplox inbox
JOE’S CRAB SHACK IS ALREADY HALF-GONE FROM HOUSTON If you’re willing to count Galveston, as of this week the number of Houston-area locations of seafood chain Joe’s Crab Shack is down to 3, cut in half after the abrupt closures of the Gulf Fwy. at Fuqua (pictured), North Fwy. at Airtex, and Pearland (3239 Silverlake Village Dr., near 288) restaurants. Nationwide, more than 25 of the chain’s 112 locations have been shuttered, ahead of a scheduled Thursday bankruptcy hearing for chain owner Ignite Restaurant Group at which a $55 million sale to former owner Landry’s is expected to be approved. (Landry’s sold the chain in 2006 for $192 million, to a private equity firm that later spun out Ignite as a separate entity.) The Joe’s Crab Shack locations in Galveston (at Seawall Blvd. near 35th), Humble (across I-69 from the Deerbrook Mall) and on Hwy. 6 (between the West Oaks Mall and Briar Forest Dr.) are still open. [Consumerist, via HBJ] Photo of Joe’s Crab Shack at 12400 Gulf Fwy.: Camren O.
MORE HOUSTON RETAIL BREAKUPS: ALFRED ANGELO BRIDAL CALLS IT QUITS Bridesmaid- and wedding-dress store Alfred Angelo appears to be shuttering all 62 of its locations nationwide, amid reports of a possible sudden bankruptcy filing. That would leave the Galleria-area Al’s Formal Wear all alone — it sits next door to the Alfred Angelo Bridal in the strip shopping center at 1801 Post Oak Blvd. It should leave the Al’s Formal Wear in the Baybrook Square shopping center kinda lonely too — it faces the Gulf Fwy. right next door to the Alfred Angelo Bridal at 1201 W. Bay Area Blvd. in Webster. The third Houston-area Alfred Angelo location — pictured above in the Commons at Willowbrook shopping center, across from the Willowbrook Mall at 7550-A FM 1960 West — is a little more sequestered from its tuxedo counterpart: Alfred Angelo sits between a DSW Shoe Warehouse and a Ross Dress for Less; the Al’s Formal Wear is wedged between a Panda Express and a Beck’s Prime on the opposite side of the shopping center parking lot. [abc13] Photo: Alfred Angelo Bridal
HUNKY DORY AND BERNADINE’S ARE SHUTTING DOWN NEXT WEEK AFTER ALL The scandal– and bankruptcy-embroiled Treadsack Group just announced that both Hunky Dory Tavern and Bernadine’s are closing next week. After the company announced in late March that both restaurants would stay open for the time being, the last day of action for each is now set as May 24th. The expanding group of Killen’s meat vendors announced on Monday that it had snagged Bernadine’s chef Graham Laborde (who stepped in to run Hunky Dory’s kitchen too, after Richard Knight left in February). No related updates from also-in-Chapter-11 Down House, or any of the other restaurants in the group. [Previously on Swamplot] Photo: Hunky Dory
Down House Ventures, the legal entity behind Treadsack’s oldest Heights-area technically-a-private-club, has filed for bankruptcy this morning, lagging just a few days behind last week’s Bernadine’s and Hunky Dory filings. The company preemptively included Down House in a Facebooked list of Treadsack restaurants that would stay open for now despite the legal and financial question marks now hanging over the company, given the sudden mid-winter departures of side-by-side restaurant and bar duo Foreign Correspondents and Canard and the details of payroll and tax issues subsequently dredged up; D&T Drive Inn and Johnny’s Gold Brick were placed on the still-truckin’ roster as well. This morning’s filings also look to have included a motion asking for funds to pay current Down House employees, as Craig Malisow reports was granted in the case of last week’s Chapter 11 initiates.
Photo: Down House
Going Down in the Heights
HUNKY DORY AND BERNADINE’S ARE NOT DEAD YET In a statement posted simultaneously yesterday to the Bernadine’s and Hunky Dory Tavern Facebook pages, Treadsack’s management team says the twin restaurants at 1801 N. Shepherd (along with the company’s remaining establishments: Down House, D&T Tavern, and Johnny’s Gold Brick) remain open — and that it’s hoping customers will support the decision by continuing to eat there: “We’ve filed Chapter 11 Bankruptcy for Hunky Dory and Bernadine’s so we can restructure our debt and continue to operate. This was a very difficult decision, and not one we came to lightly, but the chance to save the businesses that all of our employees have worked so hard to build and so many of you, our guests, have supported, made it a risk worth taking. We love these restaurants and will continue to fight for them.” [Eater Houston; previously on Swamplot] Photo: Hunky Dory
WE’VE REACHED CHAPTER 11 IN THE HUNKY DORY, BERNADINE’S STORY Here’s an update to continuing reports on the financial health of the Treadsack restaurant group, the company behind Heights-area establishments Down House, D&T Drive Inn, Johnny’s Gold Brick, Hunky Dory, Bernadine’s, Foreign Correspondents, and Canard: Mothership Ventures, LLC, an entity owned by Treadsack partner Chris Cusack and — according to Houston Press reporter Craig Malisow, the business entity that operates as Bernadine’s and Hunky Dory — filed for Chapter 11 bankruptcy protection over this past weekend. Foreign Correspondents and its next-door-neighbor bar Canard closed for business in the shopping center at 4721 N. Main St. suddenly at the end of last year; in February, Malisow published a detailed saga of payroll and tax problems behind the shutdown, alleging Treadsack restaurants had become subject to IRS and state liens totaling more than $1.3 million, and that at one point the Texas Comptroller’s office had threatened a seizure of assets at Down House if taxes were not paid. Bernadine’s and Hunky Dory have been operating since late 2015 in a new building constructed for them at the corner of 18th St. and N. Shepherd. Update, 1:30 pm: An investor has filed suit against the owners of Treadsack, the Houston Press now reports. Craig Malisow also notes that the debtor in the bankruptcy filing has been granted funds to pay for the next employee paychecks. Photo: Hunky Dory
HANCOCK FABRICS FOLDS, PREPARES TO SHUT DOWN ALL STORES Following yesterday’s sale of the company’s assets in bankruptcy court, Hancock Fabrics announced going-out-of-business promotions at all 8 locations in and around Houston, including Conroe, Katy, Clear Lake and Baytown. The Mississippi-born fabric store, which closed some outposts and reorganized under a previous Chapter 11 filing back in 2007, is now liquidating merchandise at all remaining stores nationwide, writes Dennis Seid. The company opened in 1957; as for how long the final sales will stretch out, an associate at the Gulfton store says that employees aren’t sure — “It could be July, it could be tomorrow.” [BizBuzz] Photo of Hancock Fabrics at 5867 Bissonnet St.: Edgar V.
COMMENT OF THE DAY: THE ART OF SLIPPING AWAY “The luxury real estate article says that a lot of owner/CEO’s of small oil companies are selling their mansions to help save their companies. That’s an assbackwards way — there’s a reason you stash a few million in your homestead: It’s exempt from creditors and bankruptcy. Let the dying company fold, file bankruptcy, sell the house later, and boom, you’re liquid again and start with fresh paper and zero liabilities.” [commonsense, commenting on The Typical Home Buyer’s Salary; Getting Creative in the Luxury Housing Market] Illustration: Lulu
FALLEN SPORTS AUTHORITY FILES FOR BANKRUPTCY, PREPARES FOR 140-STORE SHUTDOWN Sports Authority filed for Chapter 11 bankruptcy this morning, after some January lay-offs and a multi-million-dollar missed interest payment. Sports Authority had already announced the planned closure of some 140 underperforming stores; employees at a Dallas branch were told in February that all Texas stores would close, including the 11 in and around Houston. The company now says those closings will occur over the next 3 months; CEO Michael Foss told the Denver Post that the timeline will hopefully give the 3,400 employees anticipated to be let go “plenty of time to find their next opportunity, whether it’s in the company, or wherever else it is.” [Denver Post; previously on Swamplot] Photo of Sports Authority in Portofino Shopping Center: Woodlands Monocle
UNDERMINED SPORTS AUTHORITY TO ABANDON TEXAS AS OTHER BIG BOXES ADVANCE WITH GUNS Sports Authority, which in its glory days subsumed East End-based Oshman’s Sporting Goods, is now preparing to pull out of Texas altogether, writes Maria Halkias of the Dallas Morning News. The company laid off 100 employees in January, and was reported to be looking into Chapter 11 after missing a $21-million interest payment on its $643 million debt. Last week the company’s representatives told workers at a store in Dallas that all 25 of the Texas locations would be shuttered, though they didn’t say when. The closures look to include 11 Houston-area shops, part of 140 Sports Authority locations to be culled nationally; Jeff Kittleson of CBRE retail services in Dallas also told the Morning News that there will be “a garden variety of big box users who will want to reposition stores into these locations.” Indoor sporting goods not-quite-theme-park
Cabela’s is already slated to open up in League City shortly, and Dick’s Sporting Goods signed leases on spaces at Baybrook, Deerbrook, Willowbrook, First Colony, and The Woodlands malls last year. [Dallas Morning News, HBJ] Photo of Sports Authority at 2131 Post Oak Blvd.: Gil G.