Macy's sold 50% ownership of the mall to Alexander's in 1985, and sold the other half to them three years later. In 1992, Alexander's filed for bankruptcy and closed all its stores including the Kings Plaza location. Alexander's real estate holdings, including Kings Plaza, would live on as an affiliate of Vornado Realty Trust who assumed management of the property. The space remained vacant until 1997, when Sears took over the site. Though the opening of Sears was expected to revitalize the remaining shops in Kings Plaza, there was concern that newer shopping areas in Brooklyn such as Atlantic Terminal, the Fulton Street pedestrian mall, or the shopping district in Flatbush would create competition with Kings Plaza.