A retailer in the Fashion District has shuttered and filed for bankruptcy protection as the Center City mall and its tenants struggle to recover from the effects of the pandemic, the Philadelphia Business Journal reported. RBJ Philly LLC, which operates the Beef Jerky Experience store, filed for chapter 7 bankruptcy protection in U.S. Bankruptcy Court for the Eastern District of Pennsylvania on Aug. 30 and closed its doors the same day. Beef Jerky Experience set up shop on the mall's concourse level shortly after the Fashion District opened in late 2019. Brad Sadek of Sadek Law Offices, the attorney representing franchisee owners Randy Giandonato and Richard Kromer in the chapter 7 case, said that the duo chose to file for bankruptcy because reduced foot traffic in the Fashion District and the “rapid pace” of store closures have resulted in low visitation levels over the past four years. Handicapped by COVID-19 shutdowns and the accelerated rise of e-commerce, the Fashion District has not lived up to the expectations co-owners Macerich and PREIT had when it debuted on East Market Street in September 2019 following a $420 million redevelopment of the former Gallery mall. Prior to its opening, PREIT CEO Joe Coradino told the Business Journal he believed the retail complex would be a "resounding success" and would "transform" the struggling company. Instead, the Fashion District was derailed when COVID-19 hit the U.S. six months later. PREIT gave up most of its involvement after going through chapter 11 bankruptcy in late 2020, and Macerich has substantially controlled the Fashion District’s operations and decisions since then.
