Wednesday, May 27, 2009 | 7:10 p.m.
Beyond the Sun
Anchor Blue Retail Group Inc. today said it filed for bankruptcy protection and plans to close one of its four Las Vegas-area Anchor Blue stores.
The company, based in Ontario, Calif., said its store at Town Square Las Vegas will close. Not on the closure list are Anchor Blue stores at 4300 Meadows Lane, at the Boulevard Mall and at the Galleria at Sunset.
The company said that as part of the bankruptcy, it's selling its Levi’s & Dockers Outlet by MOST stores to Levi Strauss & Co. The Levi's & Dockers division has stores in Las Vegas at the Las Vegas Premium Outlets downtown and at the Las Vegas Outlet Center, 7400 Las Vegas Boulevard South.
"The process will allow the company to quickly restructure and emerge stronger and more competitive,'' Anchor Blue said.
"Anchor Blue Retail Group’s filing was largely the result of the significant and sustained economic downturn that has severely impacted California -- its key market -- and eroded the company’s profitability,'' a company statement said.
"We launched a series of initiatives over the past few years to enhance the company’s operational performance and refine our merchandising and marketing strategy," said Thomas Sands, CEO of Anchor Blue Retail Group. "These efforts showed good progress and initially led to considerable cost savings. However, the unprecedented sustained economic downturn and a related drop in consumer spending, especially in the teenage market, have had a severe impact on our financial performance. Our restructuring will allow us to proactively address our capital structure, find a great home for our Levi’s & Dockers Outlet by MOST division, and re-build the Anchor Blue business. We look forward to continuing to provide our customers with the quality clothing and value they expect from Anchor Blue."
"After completing a detailed analysis of all our operations and conducting negotiations with a number of our landlords, we made the difficult but necessary decision to close approximately 50 underperforming Anchor Blue stores," Sands said. "This will help us realize additional cost savings and operational efficiencies and improve our financial base so that we can better serve all of our constituencies."