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The encyclopedia · Trading & Investing · Operational decision · 2024

City Starz consignment shop shuts at Modesto mall, sellers owed up to $100,000

City Starz shut its Modesto mall store over unpaid rent, leaving dozens of consignors — one owed at least $100,000 — unpaid for sneakers and streetwear.

City Starz · 2024-09

What happened

City Starz was a consignment shop for shoes and streetwear at Vintage Faire Mall in Modesto, California. Suppliers handed over sneakers, shirts and other goods, and the store sold them for a cut of the sale. In mid-September 2024 the store closed abruptly, leaving the people who had stocked it unable to reach anyone or recover their inventory.

Owner Gabriel Ramirez blamed the closure on a business partner who he said failed to pay the mall's rent. The consignors were left holding the losses: one person said they were owed at least $100,000, a couple about $30,000, and roughly twenty others amounts of $3,000 to $5,000. Hector Gonzalez, who runs the streetwear resale outfit Bape 209, said he was owed $3,410. A former employee said dozens of people had come forward claiming they were owed money.

Ramirez said he would hate to file for bankruptcy and wanted to pay everyone back, while some of those affected said they planned to file a claim or a lawsuit. The Stanislaus County District Attorney's office had not responded to ABC10's inquiry at publication. For the consignors, the sudden closure of a store they had trusted with their goods left an open question of when — or whether — they would be paid.

Why it happened

  • The store closed abruptly over unpaid mall rent, and the consignors who had supplied its shoes and streetwear were left unpaid — one of them for at least $100,000.
  • Dozens of suppliers came forward saying they were owed money, and the owner pointed to a business partner rather than settling the debts.
What it costConsigned shoes gone; sellers owed up to $100,000costly

The lesson

Consignment means handing over inventory on a promise of payment. When the store shuts overnight — whatever the reason — the people who supplied it are the ones left unpaid, sometimes for six figures.

Aftermath

City Starz's Vintage Faire Mall storefront stood shuttered while consignors pressed owner Gabriel Ramirez for payment or their goods back. Ramirez said he wanted to repay everyone and would hate to file bankruptcy, while some of those affected said they planned to file claims or a lawsuit. The Stanislaus County District Attorney's office had not responded to ABC10's inquiry. For the dozens of suppliers, owed anywhere from a few thousand dollars to six figures, the closure left their money and inventory unresolved.

Sources

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