In late January 2017, the mall permanently closed after 32 years of operation. Demolition of the former mall began on February 6, 2017. The property was redeveloped into the MidCity District beginning in 2017.
For the next 10 years, the space was used by Castner Knott/Dillard's for their menswear. Until 2008, Steve & Barry's used the space. In 2007, Belk, after purchasing Parisian, moved its store from the former McRae's space to the much larger former Parisian space and renovated it to fit the Belk model. The former McRae's building remained vacant from then until the mall closed. Belk departed for Bridge Street Town Center in late 2014.
In the years following the renovation of 2006, a decrease in foot traffic and an increased crime threat led to many tenants of the mall relocating to other locations.[8][9] A riot erupted in December 2012 over the new Nike Air Jordan; police had to use pepper spray to calm the situation. No arrests were made.[10] In July 2014, a video surfaced online of a Belk employee attempting to fight off a shoplifter in the parking lot.[11] In September 2015, a woman was robbed at gunpoint in the parking lot of the mall.[12]
Madison Square Mall's food court empty in 2016
The pilot episode of the Food Network show, Food Court Wars was filmed at this mall. Kettle N' Spouts, the winner of the episode, received a year's worth of free rent in the mall that was valued at $100,000. Kettle N' Spouts closed only 6 months after the episode aired.[13]
Madison Square Mall was owned by CBL & Associates Properties, Inc.,[14] until it was sold to The Grove Huntsville LLC for $5 million in late April 2015. The new owners intended to redevelop the property, despite struggles with the city of Huntsville against property owners Sears, JCPenney, and most notably TouchStar Cinemas, who started a petition on June 7, 2016, to prevent their property from being demolished. Not even 24 hours later, the petition achieved over 1,000 signatures. Huntsville's Director of Urban Development, Shane Davis, made a statement regarding this move, and confirmed that the theater would not be demolished, and instead the plans would be reworked around the property.[15][16]
Madison Square Mall began liquidation in summer 2016.[17] The last liquidation sale ended on January 8, 2017.[18]
On November 28, 2016, Sears announced it would be closing on January 29, 2017, making it the last tenant or anchor to close in the mall. Sears also announced it would return to the MidCity Huntsville development that will replace Madison Square Mall in a smaller store.[19] In December 2016, JCPenney announced it would close on January 28, 2017. JCPenney exited the Huntsville area in 2016.[20]
With the closure of Sears and JCPenney, Madison Square Mall permanently closed on January 29, 2017. Demolition of the former mall began on February 6, 2017.[21] The property is now the site of MidCity District.[22]
Madison Square Mall, February 2017
The last remnant of the mall, Touchstar's Madison Square 12 theater, closed its doors permanently on May 2, 2021, and was demolished months afterwards.
