The beleaguered northern section of the Crossroads Marketplace at Peyton Drive and the 71 Freeway is losing another big box store.
Bed Bath & Beyond will close on Nov. 1 or sooner, depending on when the merchandise runs out, according to a social media post by district manager Bill Alhandy.
After a “lease expiring” sign affixed to the window prompted speculation on social media about shrinking sales and store closures, Mr. Alhandy posted: “The reason we are closing is because of the lease and only that reason.”
He said the landlord wants to make changes and “we are not part of their plans.”
Mr. Alhandy said all employees will have a job in one of the other stores he manages.
In the past several years, the center has lost Sport Chalet because of bankruptcy, Best Buy and BevMo that relocated to Chino, and SteinMart, which still has operating stores in nearby cities.
“We’re losing everything,” said Chino Hills resident Debbie Bouer, while entering Bed, Bath, and Beyond on Wednesday. “This center is a concern. PetSmart and Dollar Tree are all that’s left.
The northern section of Crossroads is owned by U.S. Bank and managed by LNR Partners and CBRE.
It was once owned by a group of investors called CRCH LLC, led by developer Lloyd Yeonsu Lee, which defaulted on its loan in 2017, not long after plans for an Asian-themed complex with 120 apartments fizzled.
LNR Partners is a commercial mortgage “special servicer,” which means it manages troubled loans.
Also in the northern section are Wendy’s, Fazoli’s, 85 C Bakery Café, and others. It does not include Lowe’s and Costco.
Community development director Joann Lombardo said the city was informed by LNR that the closure of Bed Bath & Beyond is because the retailer is reducing the number of its stores.
Ms. Lombardo said it’s her understanding that the store had previously negotiated a significant rent reduction with Crossroads, but LNR Partners did not indicate that additional reductions were requested.
A fitness center is looking to locate at Crossroads, she said, based on information provided to the city by LNR Partners and the city’s economic development consultant Jones Lang LaSalle Brokerage, known as JLL.
A damaged slope and water line problem in the rear of the property has further added to the problems, because truck deliveries have been restricted.
Ms. Lombardo said permits have been issued by the city to relocate water lines and stabilize the slope, and construction is expected to start in the next few months.
Mayor Cynthia Moran said city staff and JLL have been working closely with the Crossroads management team to attract new, vibrant businesses to fill vacancies, and to retain existing businesses.
She said it is sad that Bed Bath & Beyond is closing but the business has been struggling and closing many stores in the region, not just in Chino Hills.
“I’m optimistic and look forward to this center’s rejuvenation,” the mayor said.