Offered were company-owned properties and several available leases across Florida,Indiana, Kansas and Michgan.

The company received more than $39 million for the properties, which also included three lease terminations.

"I think everyone is extremely pleased with the results," says Mitchell Kahn, president of Hilco. "The results were very much in line with what we expected."

The stores in Winter Park, FL, Indianapolis, and Leawood, KS were not included in the sale amount, as they were lease terminations.

"Rather than sell these properties, the landlords worked out other transactions," Kahn tells GlobeSt.com.

He adds the sales must be approved by the bankruptcy court. Three of thesales, including Grosse Pointe, Sarasota, FL and Rochester Hills stores, were a private sale and may still be subject to another auction, Kahn says. After court approval, the closings should take place sometime in the next two weeks, Kahn says.

Four properties, including two stores in Birmingham, a store in Saginaw and the Jackson headquarters, are still available.

The company has already closed 10 locations, including taking its presence out of Ohio.

Jacobson's has until the end of September to complete the sales, says the chain's attorney, Sheldon Toll of the Detroit-based firm Honigman, Miller, Schwartz and Cohn.

The store properties range from a 1-acre, 30,000-sf store in Birmingham to the 60-acre, 238,000-sf headquarters facility.

Jacobson's, a regional specialty store chain, filed a Chapter 11 petition for reorganization on Jan. 15 with the US Bankruptcy Court in Detroit after a loss of more than $57 million in 2001.

The company closed five under-performing stores in Columbus, OH; Toledo, OH; Clearwater, FL; Osprey, FL and Tampa. Five other stores were closed soon after the bankruptcy was filed.

The Toledo store sold for $11.7 million. Leases for the other properties were rejected, Joseph reports.

Instant Insights /

4 Jacobson's Properties Remain After $39M Sale

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