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Retailer with big store at The Block files for bankruptcy

October 3rd, 2008, 9:14 am · 12 Comments · posted by Hang Nguyen, retail reporter

Hilo Hattie, a Hawaiian-themed retailer, on Thursday filed for bankruptcy protection, according to a court document.

The company has 265 full- and part-time employees and operates seven stores in Hawaii and two in Southern California, according to a court document. Its only O.C. store at The Block at Orange spans 20,000 square feet and sells resort fashions, home accessories, gourmet foods and island jewelry, according to its Web site. The other Southern California store is in San Diego.

“We’re not closing. We’re staying in business. We see this as a fresh start,” chief executive Ted Nelson told The Associated Press.

According to the court document: “Unfortunately, due to global uncertainties in the financial markets, historic oil prices, the contraction of the United States economy, the resultant weakening of Hawaii’s tourist driven economy, these additional efforts to restructure the company’s debt were not sufficient to permit the company to avoid seeking relief under Chapter 11 of the bankruptcy code.”

The company’s gross sales for fiscal year ended Oct. 7 were about $56 million, down from $69 million the prior year. Fiscal 2007 resulted in a loss of about $4.6 million. In the prior year, it had a profit of $500,000.

Total sales for fiscal 2008 will be substantially lower than that of 2007. The company also expects another large loss, according to the court document.

(Photo from Hilo Hattie Web site.)

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12 Responses to “Retailer with big store at The Block files for bankruptcy”

  1. Michael Says:
    October 3rd, 2008 at 12:10 pm

    Oh No!

  2. beelzebub Says:
    October 3rd, 2008 at 1:13 pm

    Well, this is sad. and yet it’s the way bussines is supposed to operate. At least they are a brick and mortar co. that actually provides goods to the consumer, and they didn’t function in a state of denial until they had borrowed as much as they could before putting up the white flag like all these clowns on Wall Street .

  3. AJ Says:
    October 3rd, 2008 at 1:14 pm

    I totally predicted what store it was before I even clicked on the article. Of course the store with some of the most frivolous crap at The Block is going to go bankrupt in today’s economy!

  4. bummer Says:
    October 3rd, 2008 at 1:32 pm

    Hawaii is taking a huge hit from the airline fallout, fuel prices and economy. In some areas, retailers are reporting 30-40% in losses. In Kona, shops are reducing staff or closing everything. Even the local hospital if having layoffs.

  5. honky Says:
    October 3rd, 2008 at 2:01 pm

    it is easy to predict the demise of this store.

  6. Kris Says:
    October 3rd, 2008 at 3:46 pm

    I have never heard of this place so it won’t bother me if it’s gone. Also, I have only been to the block three times in the last 10 years and have never seen this place either.

  7. Judith Says:
    October 3rd, 2008 at 4:42 pm

    I also thought it was this store before I read the article. I can’t afford to go to Hawaii, so I thought this was the closest I would get. The last time I was there (over a year ago), the clerks handed out shell necklaces. I still have mine, of course. This is very, very, very sad…