It's official: Rex appliance store closing

YAKIMA, Wash. -- An appliance store at the Valley Mall will close, but more retail may be headed to the Union Gap shopping center.

After more than a month of uncertainty, the Rex TV & Appliance store at the Valley Mall at 2529 Main St. in Union Gap will close June 4, said assistant manager Nathan Marez.

In April, the store's Dayton, Ohio-based parent company, Rex Stores Corp., announced that it planned to exit from the retail business by the end of the 2009 fiscal year. Rex has already closed several stores, including one in Walla Walla.

The Union Gap store will close today as it prepares for a liquidation sale. It will reopen Thursday to start the sale and go until the closing date, Marez said.

Meanwhile, a national retailer has indicated interest in the former Linens 'n Things space at the mall. And a Los Angeles retailer is trying to take over the Gottschalks space, which is finishing up its liquidation sale.

Fred Bruning, president of CenterCal Properties, the Portland area firm that owns the Valley Mall, said he has a letter of intent from a national tenant to move into the former Linens 'n Things property that's been vacant since the beginning of the year.

The tenant will be revealed when a lease is secured, which is expected in the next 30 days, he said.

CenterCal Properties also has a letter of intent from a cosmetics and beauty products store for the space adjacent to the former Linens 'n Things.

Bruning is aiming to have both stores open by October.

Though Gottschalks is about to shut its doors, Forever 21 has placed a bid to take over leases for the Gottschalks space at the Valley Mall and in 13 other locations, according to court documents. It also has a bid to buy three stores that are owned by Gottschalks.

Forever 21, which sells chic but affordable clothing for teenagers and young women, has used the closure of department stores to expand its reach. Last year, it joined Kohl's, another popular budget retailer, to take over 46 locations previously filled by Mervyns, which went out of business late last year.

The Union Gap location is one of two stores outside of California that are part of the latest bid. The other is in Anchorage, Alaska.

A final hearing with the U.S. Bankruptcy Court is scheduled Thursday. If Forever 21 receives approval, it expects to close on the deal by early June.

The Los Angeles retailer has been a staple in many West Coast shopping malls. And in the past few years, it has expanded its offerings by opening larger flagship stores called Forever XXI. The stores, which average about 24,000-square feet, offer products for both men and women of all ages.

If Forever 21 takes over the Gottschalks space at the Valley Mall, it will likely house one of these flagship stores, said Bruning said. The Union Gap store has more than 50,000 square feet.

Forever 21 currently has seven locations in Washington state, including one in Spokane, with both the Forever 21 and XXI concepts.