Bronx Best Buy to Close, Kimco Realty Corporation’s Exposure Limited
Carl Gaines April 17, 2012, 9 a.m.
In the wake of Best Buy’s announcement last week that its store at 517 East 117th Street at East River Plaza in the Bronx is on the list of 50 stores that will close, New Hyde Park REIT Kimco Realty Corp. has moved to underscore its limited exposure to the closures.
According to Kimco, only two of its shopping centers will be affected—at a total of 85,000 square feet. The shopping centers impacted are in Dayton, Ohio and Tustin, Calif.
Kimco owns a 50 percent interest in the California shopping center—The District at Tustin Legacy, whose other anchors include Target, Whole Foods and AMC Theaters. Shiloh Springs Plaza, in Dayton, Ohio, is wholly owned by the REIT.
Best Buy announced a $800 million cost reduction plan in late March 2012 when it released disappointing fourth quarter 2011 results, which included a $1.7 billion loss in revenue. Fifty stores would be shuttered as part of the plan, company CEO Brian Dunn said at the time.
“As part of our multi-channel strategy, we intend to strengthen our portfolio of store formats and footprints—closing some big box stores,” Mr. Dunn said. “Over time, we expect some of the savings will fall to the bottom line. At the same time, we will continue to accelerate our key initiatives—growing connections and services, expanding our digital capabilities and growing our business in China.”
Mr. Dunn later abruptly resigned as CEO of the company amid speculation that he misused company funds in the course of a relationship with a subordinate.