The Kroger Co. (Cincinnati) is closing a Cincinnati Fresh Fare, by the end of May, because of delays with the completion of Kenwood Towne Place, the mixed-use complex where the store is located. The Kenwood project also houses the region’s first Crate & Barrel, a Mitchell's Salon & Day Spa, the Container Store and L.A. Fitness. However, construction halted on the 570,000-square-foot complex in December 2008, after subcontractors hadn't been paid. Lead lender Bank of America filed a foreclosure suit on the property in May 2009.
The unfinished office tower meant the Kroger space had a temporary roof, which eventually lead to water damage from frozen pipes and other structural issues. The store also included a bistro, serving breakfast, lunch and dinner as well as catering, for the thousands of workers expected in the building. Without those customers, Kroger says sales at the store never reached projections.
The grocery chain operator invested $8 million to open the store and says it has lost $5 million since its November 2008 opening. The company also says there are additional fees for legal and repairs costs.
Kroger Co. spokeswoman Meghan Glynn says the company has never closed a new store and has never experienced the kind of litigation involved in the partially completed retail/office project before.
The Fresh Fare replaced an existing Kroger store in the mall complex, however the company says it has no plans to open a new store in the Kenwood area. Kroger operates Fresh Fare locations in the Dayton, Ohio, suburb of Kettering and at more than 100 other locations across the nation.