Bonwit Teller is closing its specialty clothing store in Beverly Hills because it has been losing money despite its glamorous location on Rodeo Drive.
Orren Knauer, a spokesman for Allied Stores, the parent of Bonwit Teller, said Wednesday that the company was closing the store because it had been losing money, but he declined to say how much. However, the store is said to have lost $1 million last year on sales in the $10-million range, according to published reports.
Though the store is situated at the corner of South Rodeo Drive and Wilshire Boulevard--among the nation's most prestigious shopping addresses--it suffered from several less obvious disadvantages, the company said. For example, parking was severely limited and the design of the store made it difficult to display merchandise attractively.
Bonwit Teller considered relocating to South Coast Plaza in Costa Mesa but decided against it because the costs were too high, the company said. The company said it is looking to expand in the Midwest and East. It plans to remain in Southern California, where it has a store in Palm Desert, near Palm Springs.