Simon may be in the front of a trend for US shopping malls, which are looking to attract Amazon as they search for new business models that incorporate retail and logistics. Additional capital injections from Smead Capital Management will enable Simon to consider additional acquisitions. Simon believes buying failing retail stores now is a strategic move that will lead to growth once the economy picks up again. Reporting solid profitability and positive cash flow from operations in its Q2 2020 financial results, the mall operator is planning to rescue Brooks Brothers and Lucky Brand Dungarees out of Chapter 11 and purchased Forever 21 earlier this year. Beginning in 2016, Simon turned the bankrupt apparel retailer Aéropostale into a profitable business that earned $80 million by 2020, from a loss of $100 million three years prior. This isn’t the first time Simon has invested in failing retailers and come out on top. Penney out of bankruptcy, and has also reportedly been talking with about converting vacant Sears and J.C. In addition, the company has some other ideas: It has its eye on buying J.C. Searching for ways to stem the bleeding from the collapse of these two department stores is necessary for Simon’s own survival, too. Penney.Īs of May, Simon malls had 11 Sears and 63 J.C. A number of major retailers in the US filed for Chapter 11 bankruptcy protection during the pandemic, including Sears and J.C. During Q3, SPG posted sales of 1.29 billion, which beat analyst estimates by 90 million and rose 21.7 year-over-year. Malls have been on the decline for years as e-commerce has rapidly grown, and US department stores have been hanging on by a thread that has all but snapped during the pandemic. The commercial real estate giant-with shopping centers across North America, Europe and Asia-has been buying up struggling department stores that can play a key role in the company’s survival. Sued them for $100 million of unpaid rent.The economic crisis caused by Covid-19 may be sending retailers to the exits, but Simon Property Group, the largest shopping mall operator in the US, is going the opposite direction. Tenants who are otherwise solvent – their largest tenant is Gap and Simon has In the case of Simon, there is non-payment of rent by The analyst added, “With the pandemic, we are seeing anĪcceleration of failure by private equity owned retail, in particular when it Occupancy and, although there has been a very significant amount of what SullivanĬalls retail failure, he said, “Simon has done a very good job of getting back In its 2Q report, Simon reported only a slight drop in mall Very a small transaction by Simon,” said Sullivan. “The company has an enterprise value of $55 billion, so this is With Brooks Brothers, Sullivan told YahooFinance, Simon is investing Simon, through its operating partnership, Simon Property Group, L.P., will acquire all of Taubman common stock for 52.50 per share in cash and the Taubman family will sell approximately one-third of its ownership interest at the transaction price and remain a 20 partner in TRG. REIR analyst Jim Sullivan, a managing director with BTIG, said the deal was “very successful and profitable” for Simon, earning the company back multiples of what it invested in the acquisition. Its malls that would have closed without the buyout. When the JV acquired Aeropostale, Simon had 160 stores in While protecting the mall owner’s own bottom line. Lucky Brands is currently owned by Leonard Green & Partners, a private equity firm. Smart retail investments that can help embattled apparel companies survive In a buy-your-business partner move, Simon Property Group (SPG-1.66). Simon CEO David Simon has made no secret of his desire for In 2016, they acquiredĪeropostale they paid $81 million for Forever 21 in February, just as theĬoronavirus was creeping into the US. The deal will be the third (along with mall ownerīrookfield) completed by the ABG Simon partnership. Last week, Simon Property Group in a joint venture agreed to buy Brooks Brothers and Lucky Brand Jeans out of bankruptcy for 325 million and 140.1 million, respectively. The deal comes following Brooks Brothers July bankruptcy filingĪs its iconic buttoned-up brand of men’s apparel fell out of fashion when shortsĪnd jeans became the choice du jour of stay-at-home workers during the COVID Operating at least 125 Brooks Brothers retail locations and to preserve the Brooks Group) has won bidding for the retailer with a $325 million offer.Ī court hearing to approve the sale is scheduled for AugustĪs part of the agreement, SPARC has committed to continue That Authentic Brands Group (ABG) and SPARC (a joint venture with Simon Property Brooks Brothers, America’s oldest apparel company, announced
0 kommentar(er)
