by David Bodamer November 20th, 2008
This was hinted at earlier in the week. Steve & Barry’s is liquidating.
Three months after purchasing apparel chain Steve & Barry’s out of bankruptcy, the new owners will liquidate the remaining 173 stores after plans to operate the chain fell victim to slumping retail sales and difficulty in getting financing.
Investment firms Bay Harbour Management and York Capital Management, which had bought the company for $168 million in August, plan to liquidate their holdings by early 2009, according to the company’s Chapter 11 bankruptcy filing on Wednesday in Manhattan.
“This is the hardest environment in 30 years for retailers,” said Peter Schaeffer, a partner with corporate restructuring and investment adviser Carl Marks. “Chances of companies that have filed for bankruptcy coming out whole is difficult.”
Previous entries:
- September 17, 2008, Steve & Barry’s to Keep 173 Stores, Shut 103 Others
- September 4, 2008, Why Did Steve & Barry’s Avoid Data Collection?
- August 14, 2008, Steve & Barry’s Landlords Fight Sale
- August 5, 2008, Steve & Barry’s Sells for $163M
- July 14, 2008, More Retailer News
- July 14, 2008, Playing Serious Catch-Up
- July 8, 2008, The Fate of Steve & Barry’s
- July 1, 2008, Steve & Barry’s May Close Stores
- June 23, 2008, Steve & Barry’s Cash Crunch
Related Topics: News, Retail |
by David Bodamer November 20th, 2008
Hampton’s new Target will be molded in a new company prototype, a hybrid discount store with an expanded grocery format that will help it remain competitive with Wal-Mart, which began rolling out a similar store strategy within the last year.
“It’s a mix between a general merchandise Target and a Super Target,” Anderson said. “We find that what our guest is looking for is to have the most things under one roof.”
Employees of the existing Hampton Target location will be relocated to the new store. None are expected to lose their jobs.
The company recently finished a re-model and expansion project at its Newport News store, expanding the grocery section and improving its pharmacy, among other things. Target also has two stores in the Williamsburg area.
Link.
Related Topics: News, Retail |
by David Bodamer November 20th, 2008
We did our roundups of third quarter results for shopping center REITs last week and regional mall REITs this week.
CoStar does one giant wrap-up. I like how they break into different themes and incorporate insights from a lot of different company phone calls.
Hopefully, between our reports and CoStar, you can get a rounded view of what’s going on with retail REITs these days.
Related Topics: News, REITs, Retail Real Estate |
by David Bodamer November 20th, 2008
Hedge-fund manager William Ackman said selling part of a real-estate investment trust that he wants spun off of Target Corp. would raise $5.1 billion as the rest of the “tarnished” retail industry struggles to procure cash.
Ackman’s Pershing Square Capital Management LP would buy $250 million of stock in an initial public offering of less than a fifth of the REIT, he said at a presentation in New York today. Target, the second-biggest U.S. discount chain, fell 10 percent in New York trading.
When Ackman proposed creating the REIT in October, the retailer questioned how much value the plan would produce for shareholders and said it had “serious concerns,” including that a spinoff would hurt its debt ratings. Target has dropped 18 percent since Ackman said he had a plan for the company’s real estate. The Standard & Poor’s Index fell 5 percent in the period.
“I don’t think it’s a tough sell,” Ackman said in a telephone interview. “The only thing that made it a tough sell was that it was going to cause a downgrade. We solved that problem.”
Link.
Here’s the original post.
Related Topics: Investment, News, REITs, Retail, Retail Real Estate |
by David Bodamer November 20th, 2008
Is the end near?
Debt-laden mall giant General Growth Properties Inc. has hired the law firm Sidley Austin as bankruptcy counsel while it negotiates with lenders for more time to restructure its $27 billion debt load.
The move doesn’t mean a Chapter 11 filing is imminent. Financially distressed companies often hire bankruptcy advisers and never take that step.
General Growth declined to comment. Larry Nyhan, co-chair of Sidley Austin’s bankruptcy practice, didn’t return calls seeking comment.
General Growth’s financial situation has steadily deteriorated this year and it’s stock is trading for loose change. The company, which owns more than 200 U.S. malls, has struggled to repay debt it amassed during an acquisition binge near the market’s peak. Hope has faded as retailers, in the face of slackening consumer spending, began closing stores, curbing expansion plans and, in some cases, going out of business.
Link.
Past links and stories:
- Nov. 17, 2008; General Growth Downgraded; Feldman to Stop Filing Public Reports
- Nov. 12, 2008; General Growth Roundup
- November 11, General Growth Warns of Default
- November 5, GGP, Kimco Fall After Cutting Forecasts
- November 2, General Growth “Almost Literally Worth Nothing”
- October 17, Management Changes at GGP
- October 15, Margin Calls Hit Two More Retail REITs
- October 7, General Growth Near Bankruptcy?
- October 3, General Growth CFO Steps Down; Company Suspends Dividend
- October 2, GGP Under Fire for Inclusion on Short-Sell Ban List
- October 1, Could General Growth Be Sold?
- September 23, Short Selling Banned on General Growth
- September 22, General Growth Strikes Back
- September 16, General Growth Offers More Recourse
- August 12, Another Look at GGP’s Debt
- August 6, Analysis of GGP’s Debt
- July 25, Stories With Bigger Implications?
- July 14, GGP Lines Up New Financing
- April 16, GGP’s Growing Debt Problem
Related Topics: Finance, News, REITs, Retail Real Estate |
