Hilo Hattie will start a new chapter in its 46-year history on Sunday when it officially exits bankruptcy.

One of the first changes planned by the kama'aina retailer under new ownership is a partial renovation of its flagship Nimitz Highway store.

About 3,000 square feet at the 'ewa end of the 25,000-square-foot store will be renovated after Christmas at an estimated cost of $250,000, according to Mark Storfer, Hilo Hattie chief operating officer.

"Right now it's very unproductive," he said of the space. "It's currently like a cave or a cove. We're going to open it up to match the rest of the store."

Storfer said Hilo Hattie is considering briefing rooms for visitors, but has no immediate plans to open more stores. The company has seven Hawai'i stores and 170 employees.

The retailer was taken over in June by Donald B.S. Kang, owner of local garment maker Royal Hawaiian Creations, through a stock acquisition. Kang, who was Hilo Hattie's largest unsecured creditor, won approval for a reorganization plan that invests $3 million in the business and wipes out $14 million in debt to preserve numerous vendor relationships.