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Retail continues rapid decline

  • Suit retailer Men’s Wearhouse filed for bankruptcy as the coronavirus has kept millions of office workers at home and in lounge pants. Parent company Tailored Brands, which also owns Jos A. Bank, filed for Chapter 11, after reaching a deal with a majority of its lenders to keep 1,400 stores open. The deal gives the struggling retailer, $500 million debtor-in-possession financing to keep the stores open as it seeks to reduce its debt by $630 million. (NYPost)
  • Dunkin‘ is permanently closing 8% of its United States locations, which amounts to roughly 800 restaurants. More than half of the closures are in Speedway convenience stores, a change it previously announced in February. These locations are set to be closed by the end of this year. (CNN)
  • Brookfield Property Partners is canceling plans to redevelop a former Vermont mall as an office and residential development, a sign that the slumping economy could be upending the firm’s strategy of buying and repurposing faltering malls… In a 2018 investor presentation, Brookfield named the Burlington project as an example of its strategy of transforming struggling malls by shrinking the retail footprint and adding office and residential uses. (WSJ)
  • The Chera family’s Crown Acquisitions is in default on the $70 million mortgage covering the retail condo that houses Gap’s store at 170 Broadway in FiDi, the landlord revealed in court documents. Gap sued Crown in July, asking the court to rule the lease terminated when stores were forced to shut down in mid-March. But Crown argued that the Gap’s store had been underperforming for years before the coronavirus hit, and the retailer had long sought to leave the Broadway space. (TRD)
  • As part of its plan to reduce its portfolio and cut costs amid Chapter 11 bankruptcy, J.C. Penney is looking to sell off its interest in 163 locations across the country. The department store chain has tapped Cushman & Wakefield and B. Riley Real Estate to sell the leases for 142 locations, as well as 21 stores it owns. Bids for the leases are due by mid-September, while the owned stores may take longer to sell. (BI)
  • Vornado is considering turning the J.C. Penney space at the Manhattan Mall (100 West 33rd Street) into a last-mile distribution center…. Steve Roth said on the company’s earnings call yesterday that finding a new retail tenant for the location will “be a long, slow slog.” The J.C. Penney department store has a very large shipping and receiving component which could be further enlarged. (TRD)

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