|Bid||0.00 x 1200|
|Ask||152.50 x 800|
|Day's Range||147.61 - 150.35|
|52 Week Range||145.28 - 191.49|
|Beta (3Y Monthly)||0.53|
|PE Ratio (TTM)||20.04|
|Forward Dividend & Yield||8.40 (5.65%)|
|1y Target Est||N/A|
A new report predicts that holiday sales this year will be strong, and spending will rise by 4.9% this year. Tom McGee, CEO of the International Council of Shopping Centers joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss what to expect this holiday shopping season.
Simon Property (SPG) navigating through the retail apocalypse by actively restructuring its portfolio, aiming at combining shopping, dining and entertainment options to drive more traffic.
Kimpton Hotels & Restaurants will flag a planned boutique hotel in Buckhead. Atlanta’s Portman Holdings LLC is developing the 216-room hotel on East Paces Ferry Road. It is converting the mid-century Sobu Flats condo building.
After several tireless days we have finished crunching the numbers from nearly 750 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms' equity portfolios as of June 28. The results of that effort will be put on display in this article, as […]
Simon Property's (SPG) partnership with Rue Gilt Groupe to start a new multi-platform venture to help the company leverage on the solid scope for growth in the online value-shopping market.
Restoration Hardware, a home furnishings retailer, has preliminary plans to eventually build one of its RH Gallery “mansions” at the King of Prussia Mall, according to several sources. The structure would be built on a portion of the surface parking lot where the now vacant JCPenney is located, according to these sources. It would be part of a bigger plan by Simon Property Group, owner of the mall, to incorporate apartments, a hotel and what was described as an outdoor work-play space into that section of the sprawling retail mecca. A spokesperson from Restoration Hardware couldn’t be reached for comment and the timing of such a project couldn't be determined. A spokesperson for the King of Prussia Mall had no comment. Plans to develop residential and other uses at the King of Prussia Mall has been in Simon's plans for several years.
(Bloomberg) -- Forever 21 Inc. filed for bankruptcy, joining the growing list of fashion retailers felled by heavy competition, high rents and the defection of shoppers to online outlets.Plans include cutting at least 178 domestic outlets from Forever 21’s approximately 800 stores, after a disastrous expansion outside the U.S. The Chapter 11 court filing on Sunday allows Forever 21 to keep operating while it works out a strategy to pay its creditors and turn the business around.All told, the retailer employs about 6,400 full-time and 26,400 part-time workers, court papers show. Forever 21 said it expects to exit most of its outlets in Asia and Europe, and it will shut all of its 44 Canadian stores that provide about 2,000 jobs, according to company statements.Forever 21 suffered from the same cutthroat pricing and online competition that has forced other U.S. retailers to close thousands of stores in the past two years. But its problems were deepened by inventory miscalculations--underspending one year, then overspending the next -- and a botched international venture, according to court papers.The rapid global expansion left the company stuck with locations that were too expensive and too big, court papers show. Despite having 262 stores by 2015 outside the U.S., it couldn’t achieve economies of scale because of geographical differences in taste and climate.International LossesThe result: Forever 21 is losing $10 million a month in Canada, Europe and Asia. Stateside sales are relatively strong, according to court papers filed in Wilmington, Delaware.In addition to shuttering 178 U.S. stores, the company plans to close all 44 of its Canadian outlets and 14 in Japan. It's also “exiting much of Europe and Asia,” according to a media representative.The filing cited 11 leases it wants to cancel for stores that haven’t opened yet, including two for Forever 21 and nine new stores for its beauty and wellness brand, Riley Rose. Giving up new Riley Rose shops dramatically cuts back on the company’s plans to expand the brand, which currently operates just 15 outlets.The company asked U.S. Bankruptcy Judge Kevin Gross to set rules for canceling leases that would apply to stores it decides to liquidate.Yesterday’s TrendOnce popular among teenagers in the 2000s for its affordable but eye-catching designs, Forever 21’s signature bright-yellow shopping bags have become a rarer sight as Generation Z consumers -- those born from 1998 onwards -- shifted rapidly to e-commerce and streetwear brands.The bankruptcy filing could help Forever 21 get rid of unprofitable stores and raise fresh funds, allowing the private, family-held company to restructure its flailing business for a new generation. In the meantime, the stores expect to honor gift cards, returns and exchanges.Forever 21 has obtained $275 million of debtor-in-possession financing from lenders with JPMorgan Chase & Co. as agent, as well as $75 million in new capital from TPG Sixth Street Partners and its affiliated funds.“The key to successfully effectuating this restructuring is speed and cooperation,” the company said in court papers. “Forever 21’s DIP facilities are highly conditioned on moving quickly through these cases with support from all major stakeholders, including lenders, trade vendors, and landlords.”Bankrupt retailers face more time pressure than other companies in Chapter 11 because the law requires them to decide within 120 days which leases they will keep and which they will reject. Forever 21 said it plans to ask Gross for more time to make that decision.Landlord NegotiationsThe bankruptcy filing followed months of discussions with stakeholders over how to salvage the business. Chief among those parties are the retailer’s biggest landlords, including mall owners Simon Property Group Inc. and Brookfield Property Partners LP.Forever 21 held talks with Simon and Brookfield over a pre-bankruptcy deal that would have handed them a stake in the company in exchange for considerations that could have included rent forgiveness, Bloomberg News reported earlier this month. Those talks, however, broke down, and by last week the company prepared for court proceedings without a deal in hand.The retailer is negotiating with its largest landlords to “right size” its store footprint, the company’s chief restructuring officer, Jonathan Goulding of Alvarez & Marsal, said in a court declaration. While the parties have swapped proposals, he said, they haven’t reached a deal. Just four landlords hold almost 50% of the company’s leases, he said.Forever 21 said it owes various lenders at least $227.7 million, including $194.5 million in asset-backed loans, a $20 million term loan and unsecured debt of 950 million Philippine pesos ($18.3 million) owed to a company organized in the Philippines named Praxton Commercial Corp. Bloomberg first reported Aug. 28 that Forever 21 was preparing for a bankruptcy filing.“In an age when retail, as most Americans know it, is under assault, Forever 21 intends to use these proceedings to remain viable and write a different ending from so many retail companies before it,” Goulding said. “The goal of these Chapter 11 cases is clear: emerge with a viable and feasible standalone business and keep the dream alive.”Mall WoesForever 21’s bankruptcy filing could be problematic for major U.S. mall owners, including Simon and Brookfield because it is one of the biggest mall tenants still standing after a wave of bankruptcies. The busts emptied more than 12,000 stores in the past two years, and those vacancies may be hard to fill.Simon counts Forever 21 as its sixth-largest tenant excluding department stores, with 99 outlets covering 1.5 million square feet as of March 31, according to a filing.Simon and Brookfield were both listed in court papers on Forever 21’s tally of biggest unsecured creditors. The retailer doesn’t have a lot of leverage over its landlords, according to Bloomberg Intelligence, which said in a Sept. 27 report that Forever 21 accounts for just 1.4% of Simon’s annual rent.Forever 21 specializes in fast-fashion apparel-- trendy, cheap, quickly-made knockoffs of original designs that often is worn only a few times before being given away or tossed out. Competitors include Zara, H&M and Amazon.com.Jin Sook and Do Won Chang started Forever 21, first called Fashion 21, in 1984 after emigrating from South Korea. Chang worked as a janitor, gas station attendant and cafe employee while Sook worked as a hairdresser, and the couple saved $11,000 over three years to start the retailer, Goulding said.The first store, a 900-square-foot space in Highland Park, sold $700,000 of merchandise during its first year, court papers show. Forever 21 grew rapidly and employed 43,000 at its peak, boasting more than $4 billion in annual sales.Co-founder Chang has been focused on maintaining a controlling stake in Forever 21, which hindered efforts to raise new funds. Matters are likely to be out of his hands now, with creditors typically setting the agenda in bankruptcy proceedings and major decisions subject to a judge’s approval.The case is Forever 21 Inc., 19-12122, District of Delaware (Delaware)(Updates with additional store closures in the seventh paragraph)\--With assistance from Rick Green, Boris Korby, David Scheer, Rachel Chang, Jeremy Hill, Steven Church and Adam Cataldo.To contact the reporters on this story: Eliza Ronalds-Hannon in New York at email@example.com;Lauren Coleman-Lochner in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Dawn McCartyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Rating Action: Moody's affirms seven and downgrades five classes of MSBAM 2013- C11. Global Credit Research- 30 Sep 2019. Approximately $594.9 million of structured securities affected.
The privately held apparel retailer filed for bankruptcy this weekend. Bankruptcies are rife in the sector. By one count, the number of bankruptcies has increased, and there were more store closures in the first half of 2019 than all of last year.
(Bloomberg) -- Struggling teen retailer Forever 21 Inc. has reached an impasse in talks over a restructuring deal that would give its two largest landlords a stake in the company, according to people with knowledge of the situation.The breakdown in negotiations with Simon Property Group Inc. and Brookfield Property Partners LP means the retailer is without a reorganization plan as it prepares for a bankruptcy filing, said the people, asking not to be identified discussing private negotiations. Going to court without a plan could delay and complicate the company’s turnaround efforts.Forever 21, with about 600 U.S. stores, would be one of the largest retail bankruptcies yet in a year rife with them, and could leave landlords with millions of additional square feet of vacant space. U.S. retailers have closed 8,567 stores in 2019, according to a Sept. 27 report from Coresight Research, more than all of last year. While the parties initially discussed closing at least 100 Forever 21 locations, that number could now be higher, the people said.Representatives for Forever 21 and Simon didn’t respond to requests seeking comment, while Brookfield declined to comment.Forever 21 was aiming to file for bankruptcy with an agreement in place to give its landlords a stake in the company while allowing co-founder Do Won Chang to retain a share, Bloomberg earlier reported. Negotiations with the mall operators have included questions over ownership and leadership of the company during and after its restructuring, as well as which stores to shutter.The talks among Forever 21, lenders and its landlords are evolving rapidly, and the outcome may still change, the people said.The Los Angeles-based retailer is now headed into the biggest sales period of the year, when it’s essential to have well-stocked shelves and adequate staffing. Lenders watch holiday performance keenly, and a difficult season could weaken support from creditors and vendors.\--With assistance from Natalie Wong.To contact the reporters on this story: Lauren Coleman-Lochner in New York at firstname.lastname@example.org;Eliza Ronalds-Hannon in New York at email@example.com;Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Boris Korby, Shannon D. HarringtonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Two big names in clothing retail are getting smaller. Gap Inc. laid out the details last week of its previously announced plan to split into two companies — one that is solely its Old Navy chain, and another for everything else. Meanwhile, J. Crew Group Inc. made it official last week that it plans to spin off its Madewell chain.Both of these splits are the right moves for two apparel businesses that have oddly similar problems: Their newer chains are doing well, but their older ones are struggling.(1) The breakups will allow executives to focus more intently on the troubled brands’ problems.But the plans are still risky, on their own terms and because of larger complications introduced by President Donald Trump’s trade war. The last month or so has amped up enormous tariff-related uncertainty for the apparel industry, as Trump moved to slap levies on $300 billion worth of Chinese goods, only to soon delay some of them. Clothing retailers tend to say they will deal with this situation by negotiating with suppliers. Scale is a huge asset in such negotiations, with the biggest companies having the most leverage. Once the Gap and J. Crew empires split, they will have less muscle to flex in these discussions.A similar dynamic exists with their relationships to their mall landlords. Consider the latest in the saga of another mall heavyweight, Forever 21. My colleagues at Bloomberg News reported this week that the company is holding discussions with Simon Property Group Inc. and Brookfield Property Partners LP about the mall operators buying a stake in the clothing chain as part of a potential bankruptcy filing. It would be similar to when landlords stepped in to save teen clothing chain Aeropostale; the landlords apparently decided owning a piece of an ailing retail chain was preferable to being stuck with a raft of vacancies.Several retail giants have filed for bankruptcy since that 2016 Aeropostale deal without mall operators intervening. But Forever 21 might be different, in part because of its scale: With more than 800 stores, landlords may believe that it is, to steal a popular phrase from another industry, too big to fail. A question for Gap and J. Crew is whether their splits leave them too small to matter.Of course, some of J. Crew and Gap’s peers are also slimming down, meaning they might be dealing with similar hurdles. Ascena Retail Group Inc. has sold its Maurice’s chain and is shuttering Dressbarn; Bloomberg News reported Thursday it is now considering unloading its Catherines and Lane Bryant brands. L Brands Inc. has closed its small Henri Bendel chain and sold La Senza – tiny parts of its business, to be sure. But it continues to face questions from investors about whether it should separate Victoria’s Secret and Bath & Body Works, a move that would greatly change its scale. Overall, the benefits of a sharper focus (and, in J. Crew’s case, the ability to use IPO proceeds to pay down some debt) will probably make these separations worthwhile. But even the best breakups are challenging — and the uncertain trade and mall retail environments are likely to make them even more so.(1) Old Navy's comparable sales have slipped in the two most recent quarters, but it has been the crown jewel of the company for years.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Realty Income's (O) October dividend payment marks the company's 591 successive monthly dividend payments and 88 consecutive quarterly increases through its 50-year operating history.
Realty Income (O) poised to benefit from solid investments, and focus on service, non-discretionary and low-price retail business tenants.