Centennial Gateway
Steve Ross
VEGAS INC coverage
A Utah-based retailer that closed two of its stores in Las Vegas after filing Chapter 11 bankruptcy is moving back into the market.
Retail developer Territory Inc. announced that Sportsman’s Warehouse will reopen its store at Centennial Gateway at Ann Road and U.S. 95 that it shuttered in 2009.
The reopening is expected during the first quarter of 2012, and Sportsman’s Warehouse will hire more than 100 employees, said Nick Hannon, a Territory senior vice president.
“It’s going to take time to staff up with 100-plus employees, which is good for our town,” Hannon said. “They are going to have to stock up with millions in inventory as well.”
In March 2009, Sportsman’s Warehouse filed for Chapter 11 bankruptcy, sold 15 stores and liquidated 23 of its 67 stores, including the one at Centennial Gateway and another at Lake Mead Crossing in Henderson. Only one store will reopen.
Hannon said Sportsman’s Warehouse, a hunting, fishing and outdoor retailer, was only in its store for a couple of months when the company filed for bankruptcy and the 55,000 square feet left empty were never filled.
Territory could have subdivided the space and filled it up with smaller tenants but decided to wait for a larger tenant to occupy it, Hannon said. It was built to Sportsman’s Warehouse specifications with an archery, he said.
“We kept it in the same condition because we didn’t want to divide it,” Hannon said. “It is a great box, and there aren’t that many left in the northwest, and we thought a sporting goods store was missing, and here we have it.”
With the return of Sportsman’s Warehouse, the 335,000-square-foot center will be 75 percent occupied. The space is between a 24 Hour Fitness and Fresh & Easy.
Hannon declined to discuss the terms of the lease and lease rate, but said rates have come down overall in the market over the past two to three years and landlords have been more aggressive in luring tenants.
“I think we are both lucky and glad,” Hannon said. “We are fortunate to have them back, and they are glad to have space is built to their specifications.”
Sportsman’s Warehouse emerged from bankruptcy in 2009 with a new source of capital from a private-equity investment company.
Hannon said it was disappointing to lose Sportsman’s Warehouse in the first place, but it had to do with the development and just a reflection of the recession and company’s financial picture.
“It was a Wall Street financing problem, “Hannon said. “It was heartbreaking. The community embraced them, and they had value and a great selection for hunters and fishermen. The Pro Bass Shop (at the Silverton) is 30 miles away.”
Territory got an assist from Las Vegas Councilman Steve Ross who contacted the company about returning to Las Vegas. Ross said he hopes his efforts helped but said it’s good to have the retailer return. It shows the economy at a minimum is not getting any worse, he said.
“It says a lot about the economy,” Ross said. “There still seems to be some doom and gloom out there but if you watch the economic indicators and small business, we are figuring out a way to come back. It may not be lighting speed but more jobs are being created.”
Brian Gordon, a principal at research firm Applied Analysis, said a number of national companies have moved to Las Vegas during the recession because the entry point has lowered because of falling rents. The nation’s economy has improved and many retailers remain optimistic about Las Vegas’s long-term future because of its historical growth, he said.
“Many are expecting that to prevail in the future,” Gordon said.