Would-Be Elk Grove Promenade Anchor Tenant Announces Major Job Cuts

Macy's to lay-off 7,000 employees

Troubled Chicago-based General Growth Properties (GGP), developer of the stalled Elk Grove Promenade, has long promised shoppers that a high-end retailer like Macy's would anchor the city's first major shopping center.

The hopes of GGP to have Macy's anchor the Promenade suffered a blow today when Macy's announced it would lay-off 7,000 people. Citing weakened sales and worsening economic trends, the retailer will also reduce it's quarterly dividend.

Macy's current woes make them a less than ideal potential candidate for GGP to land as an anchor tenant. If Macy's does back out, it would leave book retailer Barnes & Noble as the only remaining anchor.

With each passing day, the prospects for opening the half-finished shopping center anytime in the next three years diminishes.