Costa Mesa-based Anna’s Linens Inc. subleased 16 of its stores to Party City Corp., which plans to set up Halloween pop-up shops, according to documents filed with the U.S. Bankruptcy Court for the Central District of California in Santa Ana.
The lease deal, effective Sept. 1 to Nov. 22, could bring $250,000 to the household-goods retailer, which filed for Chapter 11 bankruptcy protection on June 14.
Anna’s Linens had more than 2,330 employees and 252 retail locations throughout the U.S. and Puerto Rico prior to the filing. It hired Hilco Merchant Resources LLC in Northbrook, Ill., and Boston-based Gordon Brothers Retail Partners LLC in June to manage liquidation of its merchandise, store furniture, fixtures and equipment.
Anna’s Linens held a store lease takeover auction on Aug. 27 at the Los Angeles office of the retailer’s attorney. FP Stores Inc. in Gardena emerged as a successful bidder on 41 store leases. The deal included one Orange County location in Santa Ana.
Anna’s Linens sent “rejection of unexpired lease” notices to its other locations, which are generally holding going-out-of-business sales. It reserved the right to rescind the notices by Sept. 15.
Rockaway, N.J.-based Party City will pay $250,000 for rent on eight pop-up shops in California, five in Texas, two in Georgia, and one in Louisiana. It will also reimburse Anna’s Linens for utility expenses and provide insurance for the duration of the lease.
