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Wednesday, Oct. 08, 2008

Macon Mall Dillard's closing

Macon Mall is losing another anchor store in about 60 days.

Dillard's department store is planning to close by mid-December, said Julie Bull, director of investor relations.

The store's nearly 130 employees were notified Tuesday morning, Bull said.

"We are working to place as many as possible in our new (The Shoppes at River Crossing) store," she said.

Little Rock, Ark.-based Dillard's opened a new store in River Crossing in March.

Shopper Sherry McAllister of Buena Vista was surprised to hear about the pending closure.

"We shop a lot at Dillard's," said McAllister as she headed into the store Tuesday. She usually comes to the mall when she goes to Warner Robins to take care of her aunt.

"Dillard's is one of the more reputable and reliable stores," where she can find business-style clothing that she likes, she said.

Sharon Raines of Taylor County was nearly speechless when she learned the store was closing.

"I shop here every two weeks to see what sales they have," Raines said. "That's depressing."

She has been to the new Dillard's at River Crossing but said it's too far for regular visits for her and friends who live in Crawford County.

Dillard's closure was forecasted in July, when foreclosure action was filed against the owner of Macon Mall because of nonpayment on a $141.2 million loan, and a new management company was approved by the court to take control of the 1.4 million-square-foot facility.

As reported in July by The Telegraph, a letter filed in the case stated: "Dillard's has apparently communicated its intent to close its store located at Macon Mall."

But at that time, store officials declined to comment.

"We feel we can better serve the Macon market from one location," Bull said Tuesday. "As you can see our commitment to the market remains tremendously strong with that brand new store there."

Dillard's reported at the end of August the net loss for the 13 weeks ending Aug. 2, was $38.3 million compared to net loss of $25.2 million for the same period in 2007, according to a news release.

At that time, a total of 14 store closures had been announced to date for fiscal year 2008.

Dillard's and Parisian department stores opened at the Macon Mall in 1997 during a $53 million renovation that nearly doubled the square footage of the mall.

In 2006, the Parisian store chain was bought by Belk Inc., and a year later the 104,000-square-foot Parisian store closed.

Mall Manager Brian Olivi said Dillard's closure is a symptom of what is happening with the nation's economy, and that Macon is feeling the impact.

"This decision is a direct result of the economic picture, and the challenges that all retailers are facing right now across the country," Olivi said. "Dillard's decision is really based on a one-store per market philosophy that they've adopted."

It's "way too early" to speculate on what effect the store's departure will have on the mall or on a possible replacement, he said.

The mall's current management company, Chicago-based Jones Lang LaSalle Americas Inc., "are constantly out trying to attract tenants," he said.

The mall has seen a lot of interest in seasonal tenants that would either move into existing vacant space or set up kiosks for the holidays, he said.

In January, Dallas, Texas-based Movie Tavern Partners LP announced plans to open a 35,000-square-foot theater in a portion of the former Parisian store.

At the time, it was expected to be open by April 2009, but no construction has begun.

Olivi said Tuesday the theater company and mall management still are working on a deal but the business might not be located in the Parisian space.

"The ownership decided it wanted to take a look at other options and see if it makes sense," he said. "Hopefully these things will iron themselves out as time goes on."

The mall location remains listed on the Movie Tavern's Web site as "coming soon," with plans to open an eight-screen theater next spring.

To contact writer Linda S. Morris, call 744-4223.