In his personal blog, store owner Jeff Kirk wrote:
There's a simple reason I decided to shutter the place -- the economy sucks, and we don't have enough in-store sales to justify the overhead I'm paying to maintain a large storefront -- coupled with about a dozen much more complex matters, including my landlord's failure to offer me or any other 2nd St tenant any kind of realistic rent relief, as I alluded to both in a recent Statesman article as well as a guest editorial I wrote for the Austin Business Journal (unfortunately the final paragraph somehow got chopped off the online version). I'll elaborate more -- much more -- in the future on what's been going on for most of the past year, and what's going to end up happening as a result, but suffice it to say some much-needed change is already in the works.Somewhat ironically, August turned out to be our best sales month to date, by a significant margin, and that was during what is typically one of the slowest furniture/home accessories sales months of the year, and without us running any ads or promoting any discounts the entire month. Still, it wasn't enough to justify keeping the business going -- at least in absence of the abatements AMLI should be providing, but isn't.
The online storefront says that Kirk Gallery will eventually return at a TBD date, likely elsewhere in town as it appears that the retailer's relationship with its landlords has turned sour. For now, items in the store have been discounted at 20-50% off. The online store will remain open.
(via Marques Harper)

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There will be lots of 2nd Street business closures. The Drag failed at pricey shops like Diesel and so will 2nd street. AMLI is good at selling the dream to it's renters so they'll keep finding new suckers to give them rent money until they fail. The successful ones will be the chain restaurants like Cantina Laredo and La Taverna. They have the power to get better rental rates and the corporate backing to keep them afloat.