COMPANY TOWN : Disney to Close Its 3 ESPN Stores

Walt Disney Co., the world’s second-largest media company, said it will close its three ESPN retail stores to focus instead on selling merchandise at its ESPN Zone restaurants, through other retailers and online.

The stores, which are based on the cable television sports channel and employ about 40 people, will close Oct. 1. Some employees will be transferred to its Disney Stores division or to other areas of the company.

Disney opened an ESPN store in Glendale in September 1997 and the two others in Santa Ana and Torrance in November 1998. The company said that after testing several methods of selling ESPN-branded merchandise, it determined that the best method is to sell it at ESPN Zone eateries, online at https://espnstore.com or through its licensing program.

The Burbank-based company, which opened its first ESPN Zone restaurant and entertainment complex last year in Baltimore, will open a 42,000-square-foot one in New York City on Sept. 14. Two more ESPN Zone locations will open next year in Atlanta and Washington.

Disney also said its ESPNstore.com site will eventually offer more than 15,000 merchandise items, including footwear and fitness and golf equipment.

The store closures come as Disney tries to reverse declining sales at its Disney Stores business, which sells toys, clothing and other items related to the company’s films, TV shows and characters. Disney is slowing down the expansion of the Disney Stores by opening fewer outlets than in previous years, and by adding new and fresher merchandise.

Disney shares fell 63 cents to close at $28.50 on the New York Stock Exchange.