Two more stores close

Two more stores in Fashion Island are slated to close, and at least two other national retailers have left the center this year.

The children’s and maternity boutique Babystyle is scheduled to close at Fashion Island at the end of April and the home furnishings store Shabby Chic will close June 1. Both retailers filed for Chapter 11 bankruptcy protection earlier this year.

National retailers Pottery Barn and the Body Shop both closed their doors at Fashion Island in January when their leases expired.

“We’re experiencing an unprecedented economic environment,” said John Christensen, spokesman for the Irvine Co., which owns Fashion Island. “We hate to see any retailer closed, but we must remain realistic. Locally, regionally and nationally, we’re taking a long-term approach.”

Fashion Island won’t release its revenue figures, but sales tax data from the city of Newport Beach show sales are down across the board.

Sales tax revenue for the fourth quarter of 2008, which includes the holiday shopping season, shows sales are off by 21.9% from the same period in 2007 at department stores in Newport Beach.

Tax revenue from furniture and appliance sales was down 47.4% and revenue from clothing stores was down 21.9% in the fourth quarter of 2008, according to the sales tax figures.

Sales tax revenue was down 97.5% for electronic equipment in the last quarter of 2008, according to the city.

Babystyle is closing all of its remaining stores after filing for Chapter 11 bankruptcy, which include four stores in California, one in Washington and one in New York.

Shabby Chic, which has operated at Fashion Island since 2001, is liquidating its remaining merchandise starting at 40% off this week, saleswoman Lisa Dirks said.

Shabby Chic, which also sells its designer decor at Target department stores, filed for Chapter 11 bankruptcy in January and is shuttering its stores nationwide.

Fashion Island is searching for replacement retailers to fill the soon-to-be empty storefronts, but had no firm names to announce immediately, Christensen said Wednesday.

Fashion Island expects a new 138,000-square-foot Nordstrom to draw more business to the shopping center when it opens in spring 2010, Christensen said.

Gourmet and specialty foods retailer Dean & DeLuca also is slated to open a 23,000-square-foot, West Coast flagship store at Fashion Island this summer, he said.

Reporter BRIANNA BAILEY may be reached at (714) 966-4625 or at brianna.bailey@latimes.com.