The coronavirus pandemic has led to the closure of retail outlets and the purchase of grocery malls and has caused suffering retailers, adding JC Penney and Lord-Taylor, to register for bankruptcy protection, however, brands seeking bankruptcy would possibly seek help from their owners. – as buyers.
Both parties, along with mall operator Brookfield Property Partners, this year purchased fast fashion chain bankruptcy Forever 21 after partnering in 2016 to win the bankruptcy youth clothing chain Aeropostale. All three parties are reportedly also in talks to buy J.C. Penney.
Simon Property “buys them back on the occasion of bankruptcy, so he acquires shares at cost or below cost,” said David Simon, the company’s CEO, at a conference call Monday night, when the company recorded a nearly 50% decrease in the fourth moment. sanctioned by store closures through Covid-19 and reductions in recruitment, deferments and non-payment. “We expect all equitable investments to be returned within one year of the integration of operations. (With Authentic), we anticipate more opportunities.”
Simon rejected the concept that Simon buys those bankruptcy stores for rent paid by retail tenants.
“We do it because, for a reason, we are in the logo and we believe we can make effective,” he said, describing those investments as “a secondary activity” where the cash Simon has to invest “is not material.” There’s simply nothing out there to stop you from making smart investments outside the gates of your core business. Array.. We’re very selective about what we’re looking at.
Simon owns 204 homes in the United States, Forum Shops in Caesars in Las Vegas, King of Prussia Mall in Pennsylvania and Woodbury Common Premium Outlets an hour’s drive from New York City.
Another credit for buying some of those failing stores also includes the ability of Simon and his partners to “reject any leases that don’t meet their criteria” so that outlets where rents take over succeed after direct expenses, he said. the addition of 4,000 jobs will also be stored in the case of Brooks Brothers.
“There are too many retail branches in grocery shopping,” Simon said. “It’s a smart genuine property. It can be remodeled … We will have to continue to evolve the product.”
When giant anchor outlets close the doors, the mall operator recovers not only the store’s location, but also “the surrounding area,” the company said in its annual report this year.
“This is an opportunity for us to take unproductive land that we have traditionally not had access to and to rebuild the site with a varied combination of uses that complements fate,” the report says.
At the Southdale Center in Minnesota, which according to the mall owner is the first closed mall in the United States, Simon demolished a former JC Penney building, doubled the footage occupied through the old branch, and opened a three-story complex. Time Sports Station with Beach Club and Rooftop Bistro; coworking spaces; and an indoor turf facility for football and other sports, according to the annual report.
Late last year, Simon had 15 branches that were being remodeled for projects that added specialty retail stores, restaurants, gyms, offices and hotels.
Try adding food to this list, especially with the pandemic that helps keep others at home and the uncertainty of economic recovery that causes consumers to control their budgets and buy only essential items.
“Genuine real estate needs have many limitations for them,” Simon said Monday. “I hope we can do more with the (edible) category.”
About Forbes: Uber’s biggest is no longer car sharing
About Forbes: Why Amazon, expanding the competition, remains in a league of its own
I’ve covered retail for over a decade and written for publications like the New York Times, Wall Street Journal and Bloomberg News. I
I’ve covered the retail industry for over a decade and I’ve written for publications like the New York Times, Wall Street Journal and Bloomberg News. I have also been ranked among the most productive influencers in the industry since 2013. An innate interest in how things paint and what distinguishes a logo motivates my cover, described as “a different voice in a sea of noise”. I am famous for my ability to extract data on existing commodities and create cutting-edge trends. Interviews with the hounds or the cash policy of the main occasions are not the only things that interest me. I’m equally interested in perceiving customer stories. My storytelling hobthrough goes beyond retail. Originally from Taiwan as an ambassador researcher and having written many chronicles about life and culture, I am also motivated by the project’s sense of telling stories that motivate and touch hearts.