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Retail nightmare intensifies

As bankruptcies pile up, real estate landlords are now bailing out their tenants by acquiring them:

  • Simon Property Group and Brookfield Property Partners have joined together and are in advanced talks to purchase J.C. Penney’s retail operations. The pair have eclipsed other interested bidders. Penney reviewed a competing offer from private-equity firm Sycamore Partners that carried a slightly higher price tag, some of the people said. But Simon and Brookfield offered certain concessions over lease agreements that Penney and its lenders viewed as delivering better value. The negotiations are fluid and aren’t certain to produce an agreement acceptable to Penney and its top lenders. (WSJ)
  • A venture backed by apparel-licensing firm Authentic Brands Group and mall owner Simon Property Group has agreed to buy Brooks Brothers for $325 million. The proposed purchase of America’s oldest apparel company, which requires bankruptcy court approval, includes a commitment to keep 125 Brooks Brothers stores open. The retailer has roughly 200 stores in North America. (WSJ)
  • The off-price retailer Stein Mart has filed for Chapter 11 bankruptcy protection and plans to shutter most of its stores. Stein Mart operates 281 stores across 30 states in the United States. (CNBC)
  • AMC is finally reopening its theaters… The world’s largest movie theater chain will reopen more than 100 US theaters on August 20. AMC closed all of its theaters in the US in March as the pandemic took hold, and the reopening has been delayed several times. The company added that it expects to open two-thirds of its more than 600 US theater locations by September 3. (CNN)
  • Nat Sherman Townhouse, the high-end tobacco retailer, which has operated for 90 years near the corner of 42nd Street and Fifth Avenue, will shutter on Sept. 25th. The Sherman family founded the store in 1930, and sold it to tobacco producers and marketer Altria Group in 2017. Though Altria will continue to produce and sell Nat Sherman-branded products, it’s shutting the famous storefront after the company’s year-long search for a buyer has come up short. (WSJ)
  • Celebrated chef Thomas Keller has announced that two Hudson Yards eateries, TAK Room restaurant and Bouchon Bakery, will close for good. (EaterNY)
  • Bloomingdale’s began skipping rent payments in April and now owes nearly $2.5 million on its outlet at the Stahl Organization’s 2085 Broadway. Stahl is also suing its parent company, Macy’s, which is the guarantor on the lease for the 25,000-square-foot space. (TRD)

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