That Mall is sick and that Store is dead!

November 9, 2008

Value City files for bankruptcy – Business First of Louisville:

Filed under: dead chains — Anita @ 10:16 am

via Value City files for bankruptcy – Business First of Louisville:

The ailing Value City Department Stores chain has filed for bankruptcy protection as it prepares to shutter its stores.

The company filed the Chapter 11 application Sunday in U.S. Bankruptcy Court’s Southern District of New York, asking the court to approve an agreement with liquidation firm Tiger Capital Group LLC to conduct closing sales at “substantially all” of its stores.

Value City’s majority owner is VCHI Acquisition Co., an investment group that bought an 81 percent stake in the then-113-unit chain in January from Columbus-based Retail Ventures Inc. (NYSE: RVI), which retains a 19 percent stake.

Spokeswoman Kristin Mack said decisions on store closings will be made over the next few weeks, declining to comment beyond the company’s filing. Value City had operated 66 stores earlier this fall, but contracted with Tiger Capital in late September to conduct closing sales at 29 stores.

The retailer is down to 37 stores, including one in at 700 Eastern Blvd., in Clarksville, and one at 3430 Preston Highway in Louisville. Earlier this year, Retail Ventures closed a store at 9070 Dixie Highway and sold it to Burlington Coat Factory Warehouse Inc., which has opened a store at the location.

Value City’s bankruptcy filing comes days after it confirmed cutting an undisclosed number of employees from its Columbus headquarters, citing the difficult economy as the reason for the cuts.

As of Oct. 15, Value City employed about 4,500.

Value City in the first seven months of its fiscal year beginning in February lost $70 million on $288.5 million in revenue.

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I’ve only been at Value City in Newport News two times. Once was around the time they first opened when I was 10 or 11. Even then I thought the store was a little junky. The second time was when I was 19, and at the time I was using a backpack for a purse, and the security guard ganged up on me and wanted me to give him the bag. I walked out.

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4 Comments »

  1. Think I went there once with my mom circa ’07. Maybe.

    It’s like a big big Roses’/Maxway commanding a old shopping center? (Online maps were none too specific.)

    She’d been there before with my aunt.

    No hassles, we were ol’ folks. You were a dangerous teeeenager–a young Ma Barker for sure . . .

    Condolences for VC’s cluelessness.

    Comment by Kevin Seward — November 9, 2008 @ 1:17 pm | Reply

  2. Short news item on Hampton Roads Value City locations:

    http://www.dailypress.com/business/dp-biz_mmvaluecity_1025oct25,0,6528543.story

    Comment by Kevin Seward — November 9, 2008 @ 1:27 pm | Reply

  3. I think im one of the few people that miss Value City…..definitely wasn’t a high end store, but if you could deal with the dimly lit, very dated stores…you could find good stuff…I’ve often described it to my friends as tuesday morning on acid….I’ll definitely miss it…I wonder whats going to go under next…I hope its not Loehmanns!

    Comment by Dan — January 20, 2009 @ 7:18 pm | Reply

  4. Used to go to the Virginia Beach Value City from time to time with my folks. My dad loved to get suits from that location.

    Comment by Jacob — November 15, 2010 @ 12:06 pm | Reply


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