An Elder-Beerman official says a reorganization of University Mall led to financial troubles of the business which may lead to a closing of the store. But a mall official disagrees, saying the company is having financial difficulties in other stores as well.
February 6, 1996
Max Gutmann, Elder-Beerman chief executive officer, said mall management failed to support the store after the mall reorganized store locations. He said the addition of new, larger stores at the opposite end of the mall directed customer attention away from Elder-Beerman.
The remodeling took the traffic away from our store from that end of the mall, he said. The mall did all they could to ruin the store.
Robert Perlmutter, chairman of Heitman Retail Properties, which manages and leases the University Mall, would not directly comment on Gutmann’s remarks but said Elder-Beerman’s financial troubles are not limited to the University Mall.
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We are sorry that Elder-Beerman was unable to compete and succeed within the Southern Illinois market, he said. We understand that it is having this problem in several other markets as well.
The Elder-Beerman Corporation filed for bankruptcy on Jan. 27. The store is asking a federal court to allow them to close their Carbondale store in the University Mall, 1237 E. Main St.
Jerri L. Uffelman, acting University Mall manager, said Heitman agents are awaiting the bankruptcy court’s decision before they can sign a contract with a new store to replace Elder-Beerman.
We are looking for something bigger and better, she said. We are looking for a high-fashion style store, like Famous Barr.
Gutmann said the court should respond in the next 30 days. He said he is confident the company will be able to close the store, which employs 70 people.
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