Should we close our two smallest stores?

Close one, and keep the other only at a lower rent. Pike Crossing can't be fixed. Halsey Street has a lease problem, and the lease is up in June.

Situation

Tanbark's 13 stores sold $21.4 million in the year to October 31, 2026. Pike Crossing and Halsey Street brought in $1.2 million and together lost $140,000. Both leases end within 14 months, so we renew or leave either way.

Finding 1

−$118,000

Pike Crossing's loss last year, and it's widening

Sales have fallen 21% in three years, since the mall lost its anchor tenant. Our best turnaround case still loses $61,000. Report p. 9

Finding 2

$22.50

The rent per square foot at which Halsey Street breaks even

It pays $31 today on 2,600 square feet, and lost $22,000 last year. Similar units on the street now let at $19. Report p. 15

Finding 3

31%

Of Garland Road's customers kept buying from us after it closed

That was 2024. For Pike Crossing we've assumed 25%, which keeps $160,000 of sales and $64,000 of margin. Report p. 21

Recommendation

Close Pike Crossing, with a last day of trading on Saturday, March 27, 2027. Renew Halsey Street only at $22.50 a square foot or less.

No signature at that rent by Friday, April 30, and Halsey Street closes too on June 30.

What happens next

Thu, Dec 3Leadership team decidesEveryone in the room
Mon, Dec 7Pike Crossing's seven staff hear it in person, before anyone elseRuth Mwangi, Retail
Mon, Jan 4Notice to Pike Crossing's landlord. Halsey Street rent talks openAnders Bakke, Property
Sat, Mar 27Last day of trading at Pike CrossingRuth Mwangi, Retail
Fri, Apr 30Halsey Street: signed at $22.50 or less, or we give noticeAnders Bakke, Property

What it costs, and what comes back

Closing Pike Crossing, once	$146,000
Lease buyout $74,000, severance for all seven staff $38,000, clearance markdowns $27,000, fixtures $7,000
Gain each year afterward	$182,000
The $118,000 loss ends, plus $64,000 of margin on sales that move

Pays for itself in about 10 months, or 15 months if not one customer follows us. Doing nothing loses $140,000 again next year.

What we're less sure of

The 25% rests on one closure. We have no second case.
The $74,000 buyout is the landlord's figure by phone, not in writing. Without it we owe ten months' rent, $92,500.