Simon's retail deals often involve collaboration with the global brand owner and licensing company Authentic Brands Group, who is also now playing a role in reviving J.C. Simon Property shares are up more than 33% this year. malls, based on one analyst's analysis, which also likely spurred the landlord's interest in investing to avoid further store closures at its own shopping centers. It also at one point had a Penney store in about 50% of its U.S. In its bid to save Penney with Brookfield, Simon saw an opportunity in Penney's loyal and diverse customer base. Simon CEO David Simon has said his company "made a ton of money" in its Aeropostale deal. He's also told analysts, "We're certainly as good as the private-equity guys when it comes to retail investment." The latter two filed for bankruptcy in 2020. Those include the mall-based retailers Aeropostale, Forever 21, Brooks Brothers and Lucky Brand. Simon has already helped to take several retailers out of bankruptcy. "It's a very similar approach in the initial stages that we've taken with all the other companies that we've managed to turn around," he said. It has scaled back contracts with vendors and has invested in launching more private labels across apparel and home, he added. He said the focus has shifted to keeping cash flowing into the coffers. A heavy debt load and the pandemic are ultimately what pushed it over the edge.Īfter working through bankruptcy proceedings, Shashoua said the Texas-headquartered company has emerged with a stronger balance sheet and better liquidity, though he did not provide figures. The business had been stumbling for years due to the ascent of e-commerce and what many analysts say was a failure by management to invest in upgrading stores and modern merchandising. Penney's troubles didn't crop up overnight. People come to us and tell us they love Penney, they grew up with Penney, and they're emotionally invested in it and have real points of view about the business." "We've gotten a lot of interest from a lot of very high-quality, highly qualified people. For now, the company said, no additional store closures are being planned.Īccording to Shashoua, the search for a permanent CEO is also ongoing and the prospects are plentiful. That included taking control of roughly 670 stores, compared with the more than 800 that Penney had when it filed. mall owner Brookfield, came to the rescue late last year, acquiring nearly all of Penney's assets out of bankruptcy for $1.75 billion in cash and debt. That's when former CEO Jill Soltau abruptly left, following the department store chain's Chapter 11 bankruptcy filing seven months earlier. mall owner - Simon Property Group - has been at the helm of Penney since Dec. Shashoua, who also is chief investment officer of the biggest U.S. More recently, Shashoua said, customers have been coming to Penney for Easter dresses and other formal wear - another sign that people are ready to dress up again. Specifically, he cited growth in home goods and athletic apparel - two categories that have outperformed during the Covid pandemic as Americans look to refresh their houses and restock their wardrobes with more comfortable clothing. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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