Gap closing last Chattanooga store next year

AP file photo / A customer shops at a Gap store in Palo Alto, Calif. The Gap at Hamilton Place mall in Chattanooga is to close next month.
AP file photo / A customer shops at a Gap store in Palo Alto, Calif. The Gap at Hamilton Place mall in Chattanooga is to close next month.

The Gap is shutting down its Hamilton Place mall store in January, leaving Chattanooga without a presence from the popular brand.

Known for its casual women, men, maternity, kids and baby clothes, Gap plans to permanently close on Jan. 26 at Hamilton Place, the store said.

In November, the clothing retailer said third-quarter same-store sales at the Gap brand company-wide were down 7% from a year ago.

Like many mall-based clothing chains, Gap is struggling to turn itself around as shoppers go online or to discounters like T.J. Maxx.

Taylor Bostwick, Hamilton Place mall marketing director, said the Gap store opened at the center in 2009. Gap also had operated a store for many years at Northgate Mall in Chattanooga until that unit shuttered in 2012, Bostwick said.

She said Hamilton Place is working to back fill the Gap space.

"We do have quite a few prospects in the works," Bostwick said.

Late last month, Forever 21, another clothing retailer, shut its Hamilton Place store as part of a number of closings nationally. Bostwick said Forever 21 had been sub-leasing its space from Belk and that retailer is responsible for finding a new tenant.

She said Hamilton Place mall, aside from those closings, has a high occupancy rate with few empty storefronts.

"It's sad to see stores leave," the marketing director said, but when "underperforming units are replaced by new exciting tenants, it's always a good story."

At the former Sears store space at one end of the mall, the center is undergoing the biggest redevelopment in its history. Dick's Sporting Goods will relocate from across Gunbarrel Road to a portion of the former Sears space. Also, a Dave & Buster's entertainment and restaurant venue is under construction in part of the space.

Bostwick said each is expected to open around March. She said there are two other spaces which aren't yet leased up. But work has started in the former Sears parking lot for the city's first Aloft Hotel and Cheesecake Factory opened a restaurant earlier this year.

Earlier this month, mall owner Chattanooga-based CBL Properties said it was suspending its dividend on common and preferred stock, citing an anticipated drop in net operating income for 2020. CBL Chief Executive Stephen Lebovitz said the expected income drop in 2020 is a result of heightened retailer bankruptcies, restructurings and store closings in 2019.

The new dividend suspension will be reviewed quarterly by the board, but it's expected to remain in place until year-end 2020, according to CBL.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.

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