Major Sports Retailer Opens at Troubled Rimrock Mall Despite $582K Tax Crisis

Billings welcomed a new retail heavyweight this week as Dunham's Sports opened its doors at Rimrock Mall, bringing fresh energy to a shopping center mired in serious financial trouble.

The midwest's largest sporting goods chain launched its second Montana location on Friday, promising 50 new jobs for local residents even as the mall faces mounting uncertainty over unpaid taxes.

Kohan Retail Investment Group, which owns the sprawling retail complex, missed a critical August 29 deadline to settle $580,702 in delinquent property taxes, creating a volatile backdrop for the store's grand opening celebrations.

The grand opening drew hundreds of shoppers despite the mall's financial storm clouds, with customers eager to explore the retailer's expansive inventory of athletic gear and sporting equipment.

Located on the mall's west side in the former Scheels and Herberger's space, the new store represents a significant investment in Billings' retail landscape at a time when many question the mall's future.

Store leadership emphasized their commitment to serving the community regardless of ownership troubles swirling around the property.

No third-party investors stepped forward to purchase the mall's tax debt, leaving the financial crisis unresolved as Yellowstone County officials weigh their next moves.

County Treasurer Hank Peters described the delinquency as unprecedented, noting he hasn't seen a business of this size fail to pay property taxes during his five-year tenure.

The tax debt represents roughly one-quarter of all outstanding property obligations in Yellowstone County, underscoring the magnitude of the financial shortfall.

Kohan purchased the 1975-era shopping destination for approximately $28 million last year, but the company has struggled with similar tax issues at properties in other states.

The same ownership group was three years behind on taxes for Michigan's Westwood Mall, causing power shutoffs and ongoing delinquencies.

For Dunham's Sports, the opening marks a strategic expansion into Montana's competitive retail market, leveraging the chain's reputation for affordable athletic merchandise and community engagement.

The retailer operates more than 260 stores across 25 states, specializing in traditional sporting goods alongside active wear and footwear for recreational athletes.

Local shoppers appeared undeterred by the mall's ownership troubles, with opening day transactions demonstrating strong consumer interest in the new retail option.

If taxes remain unpaid through early 2028, county officials could seize the property and auction it off, requiring substantial capital from any potential buyer.

The situation creates an unusual dynamic where a major retailer is investing in expansion while the underlying property faces potential foreclosure proceedings.

Mall tenants and local businesses continue operating normally despite the uncertainty, with many expressing confidence that the high-profile tax issues will eventually be resolved through negotiation or ownership changes.

The Dunham's opening provides a bright spot for Rimrock Mall's reputation, demonstrating that national retailers still view the Billings market as viable for long-term investment.