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SERVICE MERCHANDISE CALLS IT QUITS

Service Merchandise, Nashville, Tenn., which rose to prominence in the 1970s as the largest catalog-showroom retailer in the United States, is ceasing operations after concluding it cannot emerge from Chapter 11 bankruptcy protection. The closure will affect more than 200 stores — including 170 leased properties and 40 that the chain owns.

The company said it plans to have its inventory liquidated and the stores closed by Sept. 30. The 42-year-old retail company filed for Chapter 11 in March 1999 and shifted to a focus on jewelry and home entertainment.

DISNEY TO CLOSE 50 MORE UNITS

Fresh from an initial round of closings in which Disney Corp. shuttered 51 stores, the company said in January that it will begin a second round of cuts affecting 50 additional units. Disney is aiming for a portfolio of between 300 and 400 U.S. stores, down from its height of more than 500 locations two years ago.

THE NORTH FACE TO OPEN FIRST STORE

The North Face, a manufacturer that sells gear and apparel for hiking, camping and outdoor climbing, said it plans to open its first retail store in the spring, a 7,500-square foot location in Beverly Hills, Calif., one block from Rodeo Drive. The San Leandro, Calif.-based company has not revealed specifics but is planning to open more locations.

MORGAN STANLEY DEAN WITTER LAUDS MILLS’ EUROPEAN STRATEGY

Madrid Xanadu, The Mills Corp.’s retail and entertainment regional center outside Madrid, is a well-conceived project that will raise the standards for retail development and merchandising in Spain, and possibly in Europe. So said a recent Morgan Stanley Dean Witter report on the 1.2 million-square-foot project. Analysts opined that Madrid Xanadu should fare well because of limited and inferior local competition, the unique, high-profile entertainment portion and strong local support. The report said this bodes well for projects Mills is considering elsewhere in Europe, including centers in Barcelona, València and Milan.

MIDDLE EAST SHOW SLATED FOR MARCH

The eighth Middle East Council of Shopping Centres Convention takes place in Dubai, United Arab Emirates, on March 24 to 27 at the Emirates Tower Hotel.

“We expect delegates from all over the Middle East as well as India to attend this year’s event,” said Mike Davidson, this year’s conference chairman.

A highlight of the event will be the annual MECSC Industry Exhibition, which will enable the world’s leading shopping industry suppliers to meet with potential customers in one of the world’s fastest-growing markets, he added.

Potential delegates, sponsors and exhibitors are invited to contact the Middle East Council of Shopping Centres office in Dubai by telephone —
(971) 4-359-7909 or fax — (971) 4-355-8818.