![]() ![]() With this move, ABG, Simon, and Brookfield become the new ownership group for Forever 21. In 2016, the company joined an ownership group that included General Growth Properties, now owned by Brookfield, to buy teen clothing brand Aéropostale Inc., for $243.3 million, according to reports published at the time. ABG and Simon Property Group (Simon) (NYSE: SPG) will each own 37.5 percent, and Brookfield Property Partners (Brookfield) (NASDAQ: BPY) will own 25 percent of the intellectual property and operating businesses. Penney has reached a tentative deal to sell its. Penney out of bankruptcy despite screaming matches Nathan Bomey USA TODAY 0:00 0:46 J.C. This isn't the first time Simon has helped a purchasing group bail out a troubled retailer. Mall owners Simon and Brookfield to acquire J.C. The locations at Circle Center Mall and Castleton Square Mall were not listed as possible closures, but stores in Carmel, Plainfield and Evansville were on the chopping block. ![]() The purchase expands Simon's retail footprint in the United States and Asia at a time when struggling retailers are routinely shuttering locations.īriggs: David Simon is betting $3.6 billion that you'll keep shopping at mallsįorever 21 filed for bankruptcy in September and said it would close up to 178 U.S. The acquisition of Forever 21 follows Simon's announcement earlier this month that it is buying rival Taubman Centers Inc. Brookfield will own 25% of Forever 21's intellectual property and operating business. Under the terms of the deal, both Simon and ABG, a brand development, marketing and entertainment company, will each own a 37.5% stake in the company. Simon purchased the chain as part of an ownership group that includes New York City-based Authentic Brands Group (ABG) and Bermuda-based commercial real estate firm Brookfield Property Partners. Indianapolis-based Simon Property Group has acquired a stake in the bankrupt fast fashion retailer Forever 21, according to a deal finalized Wednesday. Simon shares were up less than 1% Wednesday morning, having fallen about 7% over the past 12 months.Watch Video: What we know about Simon Property Group Discover The Thousands Of Legendary Brands That Span Across All Simon Shopping Centers Nationwide. The real estate owner said it still expects to report funds from operations of between $12.30 and $12.40 per share for the year. Total sales per square foot rose 3.5%, to $669 from $646. Occupancy dropped slightly to 94.4% from 94.7% in the prior year. Simon Property Group reported fiscal second-quarter funds from operations - a metric used by real estate investment trusts that excludes certain costs, such as depreciation - of $1.06 billion, or $2.99 per share, compared with $1.06 billion, or $2.98 a share, a year ago. , Signet Jewelers, Coach owner Tapestry and Foot Locker. , Victoria's Secret owner L Brands, Justice owner Ascena Retail Group, Tommy Hilfiger owner PVH Corp. Simon's other top tenants, in terms of how much rent they contribute, include Gap Inc. It ended the latest quarter with more than $6.8 billion of liquidity. Simon added the mall owner "made a ton of money" in its Aeropostale deal.Īnalysts have said Simon has one of the best balance sheets in its industry, meaning it has plenty of capital on hand to fund more deals like this one. One of the perks of this, he said, would be greater insight into a company's financials to be able to determine how much a tenant should be paying in rent. become an investor in a distressed situation." And Simon on Wednesday wouldn't speak to the Forever 21 report specifically, but the CEO said: "I would say we certainly have the ability to help beyond what you might do on the leases. It's already a partner with Authentic Brands Group, a house for brands such as Juicy Couture and Nautica, and recently became a shareholder in e-sports provider Allied Esports, with plans to open up more gaming venues at its malls.įorever 21 declined to comment. Now, as more than 7,000 store closure announcements have already funneled through this year, with more expected to come, Simon could be eyeing other deals similar to this one. A total liquidation would have left them with more than 200 empty shops. At the time, Simon had about 160 Aeropostale stores in its portfolio, while GGP had 77. The two were part of a group that ultimately won an auction to buy the Aeropostale brand out of bankruptcy court, salvaging its real estate. Just about three years ago, Simon and mall owner General Growth Properties, which is now owned by Brookfield Property Partners, teamed up to rescue embattled teen apparel retailer Aeropostale. "We'll work together on other distressed situations." But, he added, "we're only going to buy into companies that we think have brands and that have the volume that is worth doing it." 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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