The news on store closings and openings continues to pile up. While there is significantly less bad news out there than there was at this time last year, some chains just don’t seem to be on solid footing and it might not be due solely to the recent recession. For instance, movie rental chain Blockbuster is suffering from overleverage, but its operating model may also be outdated at a time when movie downloads can be just a few mouse clicks away. As a result, the company is seriously considering bankruptcy.

For more on this and other news from the worlds of retail and retail real estate, follow the links below:

• Barron’s reports that Blockbuster may have to file for bankruptcy protection as it struggles with increasing competition.


• As its leases start to expire over the next year or so, Williams-Sonoma plans to renegotiate rents and close some stores in the larger urban markets, according to Home Furnishings Business.


• As more retailers continue to embrace social networking as a way to drive sales, the industry struggles to find a way to measure the impact from postings on sites such as Twitter and Facebook. Boston Business Journal reports that in an effort to solve this problem, Dunkin’ Donuts started tracking sales resulting from its Twitter updates.


• The Wall Street Journal reports that Kimco Realty Corp. is considering pulling out of a mixed-use development in Harlem, after being unable to secure its desired tenants. Back in 2007, when Kimco initially conceived the project, inner-city development was all the rage.


• There might be more mall forclosures to come, according to a story in the Daily Herald.


• Boston.com reports that Filene’s Basement and Syms continue to open joint locations. The latest will be in Norwood, Mass.


• General Growth started sorting its assets into stable and risky investments, in line with its proposed reorganization plan, reports the Chicago Tribune.

The season of annual earnings reports is upon us and as retailers take stock of their performance in 2009, we are starting to see announcements of store closings, especially in the apparel sector. This week alone, Abercrombie & Fitch, American Eagle Outfitters and the French Connection announced plans to either close hundreds of underperforming namesake stores or shut down underperforming concepts. But at least some of the mall owners impacted by store closings are finding innovative uses for their spaces. One Cleveland property, for instance, has been converting empty stores into greenhouses. For more on this and other news about retail and retail real estate, follow the links below:

• Forest City Ratner broke ground last week on the long-awaited Atlantic Yards project in Brooklyn, according to the Brooklyn Daily Eagle.


• An under-tenanted mall in Cleveland started using empty stores for greenhouse spaces, reports Fast Company.


• The Street.com reports that American Eagle Outfitters will close its Martin + Osa chain.


• Abercrombie & Fitch plans to shutter 100 underperforming stores over the next three years, according to the Columbus Dispatch.


• RTT News reports that apparel retailer French Connection plans to dismantle most of its U.S. store portfolio after a disappointing year in 2009. The retailer operates 23 stores in the U.S.


• According to vmsd, H&M will open 240 stores worldwide in 2010.

General Growth Properties President and COO Tom Nolan appeared on CNBC yesterday to explain General Growth’s plans and defend the deal it is proposing with Brookfield Asset Management. Then, later that night, John Bucksbaum made a rare public appearance at an industry dinner. Crain’s Chicago Business reported on his appearance.

Meanwhile, in another potential huge development in the process, the Wall Street Journal reported that Westfield Group may be entering the fray.

“A lot of people point to that,” he said at a real estate industry dinner in downtown Chicago. “I don’t think that was the problem. The problem was the credit markets disappeared.”

The remarks, at a gathering of the Real Estate Investment Assn., marked a rare public appearance for Mr. Bucksbaum, who has let others speak for General Growth since he stepped down as CEO in October 2008, at the peak of the financial crisis.

But he chose an unusual time to make them, just hours after the Chicago-based real estate investment trust (REIT) rolled out a much-anticipated proposal to recapitalize and exit from bankruptcy protection.

He made a case for the plan, which calls for a $2.6-billion equity infusion from Toronto-based Brookfield Asset Management, and dismissed a competing $10-billion takeover proposal from rival Simon Property Group Inc. In response to a question from a member of the audience, Mr. Bucksbaum didn’t address the merits of the Simon proposal, but said it didn’t constitute an offer, just “an expression of interest.”

Yet at other times, Mr. Bucksbaum seemed unwittingly to back up one of Simon’s key arguments. The Indianapolis-based mall owner contends that its offer is superior to the recapitalization because it will pay off unsecured creditors and shareholders in cash, a key element given the uncertainty of the financial markets.

Though General Growth values its plan at $15 a share, vs. Simon’s estimated $9, the company would need to raise additional capital in a variety of ways, including asset sales and new debt. It’s “a highly speculative and risky plan” based on the future performance of the financial markets, Simon said Wednesday.

Mr. Bucksbaum acknowledged that property and debt markets still look risky, saying that looming commercial real estate loan maturities over the next few years amount to a “very scary proposition.”

“In a situation like this, you never know what’s going to happen next,” he said. “You have to hope that you’ve seen the worst.”

David Stejkowski has a nice rundown of some of the new developments in the ever-evolving General Growth saga. But more has happened even since he penned that piece. Most importantly, the Wall Street Journal is reporting that Brookfield Asset Management, which has loomed large in the background for the past week, is now readying a bid to take an ownership stake in General Growth.

A lot of people predicted something like this might come to pass. Such a bid would give Brookfield a foothold in the U.S. retail real estate market while allowing General Growth to remain a standalone entity. This would be the fate that it is widely believed General Growth chairman John Bucksbaum would prefer. In a related item, a piece in Crain’s Chicago Business runs down the motivations of some of the key players in the unfolding bidding war and also makes that assertion.

David’s post had a couple of other good links as well. In other analysis, Seeking Alpha has worked up an operating pro-forma of what a merged Simon and General Growth might look like.

Meanwhile, there is now a shareholder lawsuit brewing over General Growth’s rejection of Simon’s initial bid.

There was a lot of interesting news on retail and retail real estate over this holiday weekend. Word on the street is that Vornado Realty Trust, which owns big box toy seller Toys ‘R’ Us, is looking to cash out on the chain this summer. Meanwhile, Related Cos. head Stephen Ross might end up saving the seemingly doomed Xanadu Meadowlands development in Northern New Jersey. For more on retail and retail real estate follow the links below:

• The Global Retail Executive Council Liveblog takes a look at Best Buy’s smarphone apps.


• Marketing Daily claims Facebook is one of the most effective tools for driving up shopper traffic.


• TwinCities.com reports that Supervalu will sell 18 Shaw’s supermarkets in Connecticut.


• The CoStar Group has a story up saying the market for distressed real estate debt is growing.


• Commercial real estate lenders expect to increase their loan production in 2010, according to DSnews.com.


• NorthJersey.com looks at Stephen Ross’ past development record in the context of his rumored interest in Xanadu Meadowlands.


• Vornado Realty, along with partners Bain Capital and Kohlberg Kravis Rorerts, would like to cash out on Toys ‘R’ Us through an IPO planned for this summer, according to The New York Post.


• Troubled jewelry seller Zale hired an investment banking advisory firm to help it consider strategic alternatives, reports Dallas News.


• Brokerage firm CBRE published a report showing cap rates on retail properties continue to increase.


• Brokerage firm Sperry Van Ness is providing advice to investors on how to take advantage of 1031 exchange in a short sale.


• The Wall Street Journal reports that U.S. mall owners believe the worst of the downturn is over for retail landlords.


• According to Business Week designer Tory Burch plans to open up to 100 stores worldwide in the next three to five years.


• Seeking Alpha reports that a recent insurance payout is helping Syms boost its financial position.

Though we are no longer in a de facto credit crisis, the shortage of available financing continues to be a serious problem for both retailers and retail real estate developers. The Mortgage Bankers Association reports that in the fourth quarter, there has been a noticeable pick up in the volume of commercial mortgage originations compared to a year ago. But overall, the credit situation remains daunting, according to a MarketWatch story. For more on credit availability and other news on retail and retail real estate, follow the links below.

• Our sister publication NREI reports that commercial mortgage originations showed an increase in the fourth quarter of last year.


• However, banks remain tightfisted on new loans, according to MarketWatch.com.


• Discount chain Meijer is debuting a smaller concept focusing on groceries in the Midwest, reports Indystar.com.


• The Street.com speculates that Movie Gallery’s new bankruptcy filing might benefit Blockbuster.


• The Wall Street Journal published a cautionary tale about a Memphis TIC investment gone horribly wrong. The Dirt Lawyer’s Blog follows up with some thoughts on unwise TIC investments that took place during the boom.


• The Wall Street Journal also has a story about Glenn Rufrano’s new career move.


• Atlanta Business News reports that shopping center locations can be a boon for medical practitioners.


• While other retailers are cutting back on both store-level and corporate personnel, Nordstrom plans to hire 250 people for its new store in Braintree, Mass., according to The Boston Herald.


• Bill Ackman claims Borders won’t face a bankruptcy threat, reports The New York Post.


• The CoStar Group predicts the bulk of new space demand in 2010 will come from retail franchise operators.

I’m ringing in the New Year with a bad cold. Overall it’s been pretty quiet on the retail real estate front since Christmas. Here are a few news and notes from the past week or so in case you missed them. Also, we posted a Year in Review last week that you should check out if you haven’t seen it yet.

• Talbots, which had some debt issues, has amended its secured revolving loan agreement with shareholder Aeon Co. to repay all of its outstanding third-party bank debt. The amendment is part of a larger plan for Talbots to merge with holding company BPW Acquisition Corp.


• Development on new shopping centers may have slowed in the United States, but internationally the building boom continues. For example, in Turkey nearly 100 shopping centers will be opened within three years, 63 of them in 2010.


• There’s been a lot of changes in top leadership at major retail real estate firms in recent weeks. We’ve seen changes at Developers Diversified, CBL & Associates Properties and now Cafaro Corp. where Anthony M. Cafaro Sr. and vice president John J. “Jay” Cafaro are retiring. In all cases these are planned successions taking place. The Cafaro transition has been in the works for a long time. We wrote a case study about the plan back in 2007.


• The company formerly known as Ritz Camera has emerged from bankruptcy with a new business plan. The chain will now be known as Ritz Camera & Image and expanded its scope will go beyond just selling cameras, camera equipment and photos.


• Guru Focus interviewed Ben Johnson, the author of the new book Money Talks, Bullshit Walks: Inside the Contrarian Mind of Billionaire Mogul Sam Zell. It is an unauthorized biography. In the interview, Johnson talks about how he pulled the book together. Johnson was formerly the editor of Shopping Center World, which is what Retail Traffic used to be called.


• Kevin Maggiacomo, President and CEO of Sperry Van Ness, posted a lengthy New Year’s Message to his blog that doubles as a 2010 forecast and outlook. It’s worth reading.


• There was a terrible mall shooting in Finland. A Kosovan-born gunman killed his ex-girlfriend and four other people. His ex-girlfriend worked at the mall, although she was not at the mall at the time. He shot four at the property, killed his ex-girlfriend at her apartment and then later killed himself.

The week surrounding Christmas has historically been a quiet period for the real estate industry, as everyone concentrates on friends and family and tries to forget about business for a few days. Nevertheless, there was some hard news this past week, including a decisive vote by the New York City Council on a proposed retail redevelopment in the Bronx, a major retail property sale in Scotland and another mall default, this time in Orange County, Calif.

• Bloomberg reports that Scotland’s second largest mall traded hands for $479 million.


• Commercial brokerage firm CB Richard Ellis opened an office in Long Island City, the first outer borough office for any national brokerage firm, according to the New York Daily News.


• A vote by New York City Council spelled doom for the redevelopment of the Kingsbridge Armory in the Bronx into a retail center, reports The New York Times. The decision came after Mayor Bloomberg vetoed the Council’s previous vote to scrap the redevelopment over wage disputes between the developer, The Related Companies, and local officials.


• The Shops at Anaheim Garden Walk became the latest retail property to default on a loan and face foreclosure in California’s Orange County, according to The Orange County Register.


• The Wall Street Journal posted a story indicating Excel Trust Inc. is planning a $300 million IPO.


• National Public Radio posted a podcast from the New York ICSC conference that took place Dec. 7 and 8.


• Mall of America revealed it expects a healthy increase in sales this holiday season, according to CNBC.


• The Street.com ran a feature on the Crystals at City Center, a new high concept mall in Las Vegas.

I’ll be posting some thoughts about the ICSC New York National Conference and Dealmaking later today or some time tomorrow. The format is slightly different than past years. I’m still trying to get a read on the mood. It’s obviously better than last year when the conference was held on the heels of the major collapses by Lehman Brothers and AIG. Things aren’t exactly good, but there’s a feeling that we’re near the beginning of the recovery. I’ll write more when I get a chance to gauge what more people think.

For now, here’s a roundup of some headlines from late last week and this past weekend.

• ING’s David Lynn wrote a column for our sister publication NREI looking at the signs of life emerging from lenders. It’s not easy to get loans, but it is easier than it was earlier this year. Average mortgage rates are down from crisis levels and mortgage spreads have decreased as well. It’s a step in the right direction.


• Rumors circulated that Amazon might be opening brick-and-mortar locations. But the online retail giant denied that this is the case.


• Joseph Freed & Associates has at least one more week at the helm of Block 37. It is fighting to retain control of the project. The delay in this case is due to the receiver being unable to line up the necessary insurance for the project. The New York Times also had an interesting piece about the Block 37 saga.


• Anne D’Innoenzio wrote a great primer on understanding holiday shopping data. For example, it puts into context Black Friday sales and whether or not they are a good bellwether for the rest of the season.


• Llenrock Blog put together a top 10 list of the best commercial real estate books. It’s worth checking out. It also seems like there’s room for some good stories to be told about the histories of some companies (say, Simon Property Group or the story of the Debarolo family). Wouldn’t that make for interesting reading?


• Speaking of Simon, the firm, along with Brookfield Asset Management has stocked up on some of General Growth’s debt. The Wall Street Journal also reported on the moves by Brookfield and Simon. We’ll further explore the implications of this buying spree in our newsletter this week.


• In an interesting commentary with lots of links, Kaid Benfield asks, “As we lose shopping malls, are we losing something sacred?” Are malls America’s cathedrals? The piece explores that question and its implications.


• Lastly, in a bizarre story, a man dressed as an elf was jailed after telling a mall Santa that he was carrying dynamite. He wasn’t, but is facing stiff charges for the hoax.

We made it through Black Friday and the rest of the weekend. NRF’s early take is that up 0.5 percent. ShopperTrak’s numbers are extrapolated off the traffic counts the company conducts at malls.

Barry Ritholz looks at why the earliest numbers that get reported are a bit suspect. We’ll get more reliable figures tomorrow. That’s when ICSC and Goldman Sachs report the first weekly holiday same-store sales stats. Still, all the early numbers should be viewed with some skepticism and we really need to wait until the full season has passed and we started getting the monthly same-store sales numbers from retailers. We’ll get November numbers in early December. That will be the first really clear view of how the holiday shopping season is panning out.

As the stats come rolling in, the Wall Street Journal has a report that wonders if any of the holiday sales predictions matter. Most of the previews come out in September and October. Is that too soon for forecasts? The report also looks at the methodologies of the different prognosticators and wonder if any are accurate enough.

Here are some other news and notes from the last few days.

• An event with teen star Justin Bieber at Roosevelt Field Mall got a little bit out of control.


• The Mall of America conducted its first lockdown drill. It will conduct another round of drills after the New Year.


• An interesting story by Joel Kotkin looks at the proliferation of malls in India. In 2000, there were virtually no malls in India. Now there are several hundred and many more on the way. The story includes lots of interesting links and looks at mall development internationally. Similarly, a recent WSJ piece looks at the state of mall development in China.


• Lastly, there’s now a cool new Iphone app that features maps to more than 1,000 malls in the United States.