Shop closings leave five vacancies at 3401 Walnut

A University official said Penn chose not to review certain leases in order to get a better mix of retail on campus. Last one out, remember to hit the lights. Four retailers -- Software Etc., Everything Yogurt, Bain's Deli and Metro Hair -- have all left the troubled Shoppes at Penn in recent weeks. The departures bring the number of empty storefronts in the 3401 Walnut Street complex to five, including the space vacated by Sam Goody in January 1997. Penn decided not to renew the leases of the four stores in order "to offer a better mix of? merchandise," Managing Director of Real Estate Tom Lussenhop said. "We've got numerous prospects to fill those spots," he added. But since assuming full leasing responsibilities for the complex from Kravco -- a leasing company -- in December 1996, Penn administrators have been hard pressed to secure the right mix of stores. The decision to take over leasing the facility followed a series of retail closings in the complex, including The Lodge, Quantum Books, Perfect Pretzel and the Italian Bistro. At the time, University President Judith Rodin cited "the frequent vacancies in the complex [which] left administrators outraged" as the motivating factor in the decision to take over its leasing. The Tuscany Cafe, located on 34th Street between Walnut and Sansom streets, closed in April 1997 when the company filed for bankruptcy. A Starbucks opened in the same space last summer. Several University City store owners said they believe the University charges prohibitively high rents for spaces in the complex. But what role, if any, high rents play in driving away retailers remains unclear. University officials have maintained that unrelated circumstances account for each of the departures. Fred Green, who owns and operates University Jewelers with his wife, said he believes that rents for 3401 Walnut are "positively unfair." Nonetheless, he is currently negotiating a lease for the complex with Penn. University Jewelers is located in The Book Store building at 38th Street and Locust Walk. The facility is scheduled to be demolished this fall to make way for a new Wharton School building, as the bookstore moves to the Sansom Common complex now under construction. "We're over a barrel," Green said. "We have no other place to go." But not everyone is so sure that 3401 Walnut is a bad bargain. Several of the stores whose leases expired said they would have preferred to remain. Ray Habib of Restaurant Systems International, which owns the Everything Yogurt chain, said the company would have loved to remain at 3401 Walnut. "We were looking forward to? getting a new lease," he added. Lussenhop said the decision not to renew the establishment's lease was motivated by a desire to bring in fresh retail concepts. But Tanya Dungee, a former employee of Everything Yogurt, said the "store was filthy" and "just went down." A former manager of the Software, Etc. store said he was shocked by Penn's decision. "Nobody really knows why it closed down," said the manager, who refused to give his name. Will Jackson, the manager of Foot Locker, next to the Software, Etc. space, was also puzzled by the decision. "[Software, Etc. was] making a profit, but they were told they had to close down," Jackson said. Officials at Babbage's, Software, Etc.'s parent company, did not return repeated phone calls for comment. Software, Etc. was the only store in the University City area that sold video games. The owner of Metro Hair, who also runs two salons called Adolf Biecker elsewhere in the city, was unavailable for comment. Bain's Deli is one of three Bain's franchises in the Philadelphia area owned by Channing Williams. All three have closed in recent weeks. Williams was unavailable for comment.