WEST LEBANON — Two days after Christmas in late December, a mechanical failure in a tenant space at the Powerhouse Mall caused flooding that damaged the flooring in the main lobby and hallway of the first floor, and two tenant spaces.

The mall closed on Dec. 27 and large sections of flooring — southern yellow pine that had been cut into wood blocks — were ripped up, said Heather Doran, the mall’s manager, who works for the mall’s owner, Connecticut River Capital.

“It was heartbreaking to pick up that floor and throw it in Dumpsters,” Doran said. “It’s the floor I walked on as a child. I have so many memories, and I know so many people do, the main atrium had that beautiful floor, it was hard to see it go, but there wasn’t any way to salvage it.”

Now the mall, which has been in operation since 1986, is in a period of transition. In addition to recovering from the flooding, the mall also is seeing change among some of the tenants. Bonkers, a toy store, closed its doors on Jan. 6, and Country Kids Clothing is looking for a new owner. The Eastern Mountain Sports, after being acquired by a new corporate owner amid a bankruptcy, will remain open and just signed a 10-year lease.

Liz Staples at Bonkers closed the store after 25 years in order to retire. Staples did not respond to requests for comment for this story.

Liz Joyce plans to retire after 13 years of running Country Kids Clothing, a children’s boutique. She is still looking for a new owner and sees opportunities for the store to sell more toys following Bonkers’ closure.

“We have amazing local support so it’s just a matter of finding someone to buy the business,” Joyce said.

Eastern Mountain Sports and Bob’s Stores, which were owned by GoDigital Media Group, filed for bankruptcy in June. Mountain Warehouse, which is based in Europe, purchased EMS last August and, as a result, the West Lebanon store will remain open, continuing to bring outdoor gear to the mall.

Following the December flooding, several stores had to close temporarily. Something Sweet, a candy store, reopened on Jan. 27, and Lemon Tree, a gift shop, has yet to reopen as it is waiting on new carpeting.

Doran acknowledged the turbulence but expressed excitement for the future of the mall and its place in the Upper Valley. She also said anchor tenants such as Lui Lui, L.L. Bean and EMS continue to bring new and returning traffic to the mall.

“I know that people have been feeling some uncertainty with the flooding that occurred and a couple of the store owners retiring,” Doran said. “It is different, it’s kind of a new phase of the mall but at the same time we’re very excited about the future.”

When Connecticut River Capital took over ownership of the mall in 2022, it had ideas to update some aspects of the building. Now the need to address the damage from the flooding has created an opportunity for the company to restore and improve the mall’s infrastructure.

Connecticut River Capital was unable to source the original flooring, so the company has looked at other flooring options including granite. The company put new roofs on Lui Lui and Marvin Design Gallery in July 2024 and plans to repave the parking lot in the summer.

It is also working with an interior designer to revamp the interior aesthetics of the mall, Doran said.

Store owners are looking forward to the ongoing improvements.

“With certain improvements, it should continue to be one of the best places to own a small business,” Joyce said, noting that the mall draws customers from New London, Quechee, Lebanon, Hartford, Norwich and Hanover.

“This is the best location for this kind of business and I’m excited for what I think they can bring in for new tenants,” Joyce said.

In addition to the infrastructure advancements, Powerhouse Mall has invested in community events such as the Lebanon Farmers Market. In November, the mall began hosting the Lebanon Farmers Market twice a month on Thursdays, which they plan to continue, Doran said. The mall also plans other events throughout the year, such as a summer celebration in July.

Sarah Luhmann, owner of Adorn Boutique which opened in Powerhouse Mall in May 2021, said that she always takes advantage of opportunities the facility offers, so if they are having an event she is usually right there with them.

“I have seen some new customers from (the events) and I hope that the farmers market continues to grow. As more people know that it’s there, I think it’s a nice thing to have for the community,” Luhmann said.

Adorn Boutique is the newest store in the mall. The store will celebrate its fourth year this May and every year that they have been in business they have grown in sales, profit and customer base, Luhmann said.

“I work really hard knowing the Upper Valley, the styles that we have and the different events that we have,” Luhmann said. “I think it’s key to offer service, a quality product at a decent price and when you have those three mixed, in a nice environment, I feel like that is a very nice opportunity to grow.”

Though some of the shops offer online shopping options, the mall emphasizes an in-person shopping experience.

“I don’t have a ton of sales (online), it’s available to customers if they can’t get to the store and they want to purchase something but for the most part that online is to compliment my brick-and-mortar store,” Luhmann said.

That’s true of most of the mall’s shops.

“The kinds of stores and the experience that you have here are different than at the bigger box stores,” Doran said. “We love being able to offer something that is not offered anywhere else and that is what the shopping experience at the mall is and has always been.”

Joyce said that contrary to popular belief the surge in online shopping during the COVID-19 pandemic has inspired many people to return to in-person shopping since.

“The internet is obviously here to stay and in a very big way but there’s that need for customer service and to touch and feel the product and to get help with sizing,” Joyce said.

Following the renovations and planning for the future, Powerhouse Mall is planning for a “reopening.”

“We want people to come back and say, ‘Hey, we’re still here and we’re still thriving. Look at our new floors’,” Doran said.

Elle Muller can be reached at daniellewingmuller@gmail.com.