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Murky retail outlook

Retail Update:

  • Mall owner Simon Property Group and brand management company Authentic Brands Group (ABG) bid to acquire bankrupt Brooks Brothers for $305 million. The stalking-horse bid — meaning it sets the base price for the retailer in an auction — was filed by Sparc LLC (owned by Simon and ABG) and would keep at least 125 of Brooks Brothers’ 200 stores open. A hearing for the bid is set for Aug. 3. (CO)
  • Among retailers, the Gap has been one of the most high-profile proponents of the idea that the pandemic has canceled its rent obligations… A judge ordered the Gap and its Old Navy subsidiary to keep paying the landlord of 1530 Broadway nearly $3 million a month in rent at the 60,000-square-foot space that remains closed. The companies must also put up a $5.8 million bond to secure payment of rent arrears from May and June. Gap’s line of argument put it in the peculiar position of seeking to block the lease termination, while also claiming the lease was already terminated. The judge determined that this was not contradictory because a court has yet to rule on whether the lease was actually terminated. (TRD)
  • Vornado gave Dig Inn until July 8 to vacate the property after serving up a notice of default a month before and terminating its lease June 29. The REIT is suing a Midtown eatery for $87,000 in unpaid rent. (Crain’s)

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