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Abercrombie & Fitch Co. Message Board

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  • gwconcord gwconcord Jun 19, 2009 12:06 AM Flag

    ANF upgraded - that is the good news..

    I agree that many mall operators and big box lessors are not in any position to play hardball.

    I also agree that malls will be going bankrupt, but I think these will be the lower tier malls that ANF tends not to lease space from. Specifically, the malls with high vacancy rates.

    A new owner will wind up with any bankrupt mall or other commercial building, and will have an incentive to lease any vacant space. This is a positive for any retailer with the financial ability to rent the space or renew a lease, as they ought to be able to negotiate low rents.

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    • My local mall has an Abercrombie and it went broke. The mall business is in crisis.

      • 1 Reply to hiramfoster
      • Yes, I assumed that lower tier, highly vacant malls would be the ones going bankrupt, but there are other issues (if your mall has a low vacancy rate) that can be negative for even the higher tier malls including:
        -malls that rely highly on percentages of sales of their tenants in order to be profitable
        -malls that owners overpaid for during the real estate bubble that took on too much debt
        -malls that have maturing loans, and that may be able to pay a mortgage at current rates, but have difficulty getting refinancing

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