Hilo Hattie said it has renegotiated a lease that will allow the retailer to open a flagship store in Waikiki at Royal Hawaiian Center in July 2009.

The company, which filed for bankruptcy reorganization on Oct. 2 after struggling with finances for the past year or so, did not disclose new terms of its lease with landowner Kamehameha Schools.

The Waikiki Hilo Hattie store had previously been slated to open this summer at the mall, but had been derailed by the retailer's financial troubles that in June resulted in repayment plans with vendors and the sale of the company to California investors in July.

Dubbed Hilo Hattie at the Beach, the new store will replace Hilo Hattie's present flagship store on Nimitz Highway in Iwilei, and is being designed to feature a "more authentic" Hawaiiana experience and revitalized merchandise selection.

Following completion of the design phase, store construction is expected to begin as early as February. The two-story store occupying 29,000 square feet will be located at the Diamond Head end of the mall next to Cheesecake Factory.