DMC, Cal Mart Host Town Hall Meetings
As Dallas Market Center (DMC) executives inch closer to assuming the management of the California Mart, a number of Cal Mart tenants remain concerned about future show dates, showroom locations and other issues that the new group would have to deal with should it take over control from current building owner Hertz Investment Group.
In a series of “town hall” meetings held Nov. 13–15 with Cal Mart tenants, DMC president Bill Winsor and marketing vice president Cindy Morris outlined plans that call for transforming the “C” building of the complex into gift and home accessory showrooms and possibly taking over management of the entire center. DMC is currently in due diligence, and a decision is expected to be finalized around the first of the year.
Rumors and speculation have been swirling around the Cal Mart in recent weeks over DMC’s intentions, leading some tenants to become concerned that the group may play favorites with show dates and gift vendors because it is partnered with United Kingdom-based DMG World Media, operators of gift industry trade shows worldwide as well as London’s top tabloid, the Daily Mail. The group also has a stake in gift show promoter George Little Management LLC, which runs the California Gift Show at the Los Angeles Convention Center. At the same time, the Dallas Market Center is also home to various apparel shows.
During the meetings, Winsor and Morris attempted to assure tenants that synergy and parity were their goals.
“Many of our customers in the Dallas Market Center are here as well,” said Winsor. “Our goal is not to run people out of the building. What I do know is that this won’t work unless we have the same vision. And when I walk the floors here, I see some pockets where there’s no synergy. There’s some fragmentation of the industry here and it really could be the fashion capital of the West again.”
Fifth-floor vendor Fred Postal, who also maintains a showroom in the Dallas Market Center, rang out in support of new management.
“Bill Winsor’s the kind of guy who believes in personal relationships with everyone,” he said. “In Dallas, he’s on the floor on Saturdays and Sundays talking with the vendors. The management is extremely professional.”
Others questioned DMC’s promise to relocate tenants to similar environments. A group of fifth-floor better/contemporary apparel vendors remained skeptical after several had just spent thousands of dollars relocating from the eighth floor.“We’ve spent a lot of effort working out a merchandising plan on the fifth floor with Karen Kane, myself and others and now there’s a possibility of it all being upchucked,” said Denny Rabineau, owner of better line Mica. “A lot of us have been here a long time, have paid our bills on time. Why not take care of the older and loyal customers and move the new tenants around? I’m trying to get specific questions answered but I only hear ’that’s to be decided.’”
Karen George of Karen George Sales said she thinks it would not be cost-effective for the Cal Mart to relocate fifth-floor tenants.
“It really could cost them millions to move just one wing, and the way I see it is they don’t need to take the fifth floor right now,” she said. “They’re working from the top down and have only 75,000 [out of 675,000] square feet leased so far.”
Winsor said he’s sensitive to the fifth floor’s situation and added that the group will have to work more face to face to come to a conclusion.
The current plan is to have the floor’s tenants relocated by August 2002. Winsor said that tenants who are to be relocated will receive 60 days’ notice to move. —Robert McAllister
