Bargain hunters left Liquidation World empty handed and disappointed this week when the Gibsons store closed its doors.
"The store is closed and it will be broom swept and emptied by the end of the month," said Charles Haubiel, executive vice president of legal and real estate with Big Lots, the U.S. company that took over Liquidation World last year. "We are actively looking for other sites in Gibsons and we hope to find a different site and open as soon as we can, but right now, we don't have anything on the horizon."
The closure comes after Big Lots was unable to sign a new lease with Wesbild, owners of Gibsons Park Plaza Mall. The current lease expires on Jan. 31.
That lease is actually held by Foot Locker Canada, which has been subleasing the property at a reduced rate to Liquidation World and has said they no longer wish to do so.
"Foot Locker did not want to renew because obviously they were subsidizing Liquidation World for the past five years. They already gave us notice during the holidays that they would not be renewing, so we knew that would happen," said Kevin Wong of Wesbild.
Knowing Foot Locker would not renew, he said Wesbild began actively trying to come up with a new lease agreement with Liquidation World, but he said Big Lots hasn't been co-operative.
"We want to keep them, but Big Lots has been very unco-operative. They don't return our calls, they're based out of Columbus, Ohio, and they haven't presented us with any proposals to stay," said Kevin Wong of Wesbild.
Haubiel says that statement isn't true.
"That's disingenuous. I've had a number of calls with two of their folks. No, there is nothing on paper, we emailed back and forth. But I've got to be honest with you, that's the kind of stuff that is really, really disingenuous to hear," Haubiel said.
Wong said a figure was given to Big Lots from Wesbild in an effort to get some kind of lease agreement signed.
"We sent them a letter saying 'OK look, if you can't send us a proposal and if we can't come to an agreement before the end of the month, then you will be over-holding. And if you're over-holding you're going to have to pay the rent that Foot Locker Canada, our tenant, is paying in order to stay on a month-to-month basis afterwards,'" Wong said.
Haubiel said that price was way too high.
"Frankly we're a very successful company in the U.S. and we want to have a very successful company in Canada. We will not overpay on leases that we don't believe we can be productive in, and their ask was far above what we believe we could be productive in," Haubiel said.
They did not counter-offer, but decided to close up shop, to the dismay of Wesbild.
"It's in our best financial interest, interest for the community, to keep them there. It's just we haven't received any response from them, but we're still open to talking to them. The month's not over yet, and if they came back to us tomorrow and said they would like to stay and pay this rent, we would definitely entertain it," Wong said.
Haubiel said Big Lots does not plan to discuss the issue again. Rather they are looking for a more affordable place to set up shop.
Wong is currently in discussions with one tenant who may take over half of the 20,000 square foot space, but he assures the public Wal Mart will not be considered for the site.
"That rumour should have been killed a long time ago. I try to be very clear with anybody who ever brings that up. We understand. We will not entertain Wal Mart. If they were ever to come back to us we would just say 'no, it's not going to work' and we understand that. We're not trying to raise that deal again or reignite that interest. From Wesbild's standpoint, we know that's not going to work out," Wong said.
"There is zero chance for it to come back here."
