Another large Santa Fe Place mall store is closing down.

Shoe Pavilion, based in Sherman Oaks, Calif., has started going- out-of business sales at its 64 stores, all in the Western part of the country.

Meanwhile, American Home, an Albuquerque-based home-furnishings chain with a store on St. Michael's Drive in Santa Fe, announced Monday that it filed a voluntary petition for protection under Chapter 11 bankruptcy laws while it reorganizes.

The furniture retailer said it plans "to restructure the company's debt and realign its business operations" while keeping its stores open.

Shoe Pavilion, which opened in Santa Fe in October of 2006, occupies 15,000 square feet in Santa Fe Place previously used by China Palace restaurant and Walgreens.

The pending closure of the shoe store follows an announcement by Mervyns that it will shutter its 149 department stores, including one in Santa Fe Place, by the end of the year.

Both closures come as retailers struggle with a faltering economy that has cost thousands of jobs around the country, made consumers unwilling to spend and prompted fears of a slow holiday shopping season.

A Shoe Pavilion employee said the Santa Fe store employs about 10 people. The employee said she didn't know how long the door-closing sale would go on but noted, "It's been busier than usual."

Beth Riebschlager, manager of the south-side mall, couldn't be reached for comment Monday.

In addition to New Mexico, Shoe Pavilion, which has been in business for 29 years, has stores in California, Washington and Oregon.

An industry publication, Footwear News, said Shoe Pavilion's closing follows the company's inability "to sell itself to continue as a going concern."

At one time, Shoe Pavilion was known as "the largest independent off-price footwear retailer on the West Coast," according to a report in the Long Beach Press-Telegram.

Shoe Pavilion's going-out-of-business sale is being conducted by a joint-venture group that includes Tiger Capital Group, Great American Group, SB Capital Group and Hudson Capital Partners, Footwear News said.

American Home's court petition was "due to the state of economy and the difficult operating environment within our industry," Kenton Van Harten, chief executive officer, said in a statement. "After careful consideration of available alternatives and upon consultation with company advisers, it was determined that a Chapter 11 filing was necessary."

Under Chapter 11, the debtor remains in possession of the business and controls its operation. Debtors and creditors typically work together through the course of the bankruptcy.

"We are committed to serving our customers and continuing with regular operations through this re-organization," Van Harten said.

American Home, previously American Furniture Co., was founded in 1936 and has five stores in New Mexico and six in Arizona.

Contact Bob Quick

at 986-3011 or bobquick@sfnewmexican.com.

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