Nate Delesline III’s Post

"Express, whose portfolio includes its namesake banner, UpWest and Bonobos, said operations will continue as normal but 95 Express stores and all UpWest stores will close." "In a news release, Express said it filed for bankruptcy to “facilitate” a sale process of most of its retail stores and operations to the investor group, which includes WHP, Simon Property Group and Brookfield Properties. It received a nonbinding letter of intent from the investors to buy the assets, and has also secured $35 million in new financing from some of its existing lenders, subject to court approval." ❓ I find it interesting that landlords such as Simon and Brookfield can own a portion of the tenants that occupy their malls when they have co-tenancy clauses that would financially benefit other tenants in the mall should those failing tenants close. Does anyone else see this as a conflict of interest veiled behind the argument that landlords want the malls to thrive for their other tenants and investors instead of letting that tenant fail and backfilling them with a better tenant? Seems like a band-aid solution by entities with big pockets. https://lnkd.in/grZMdHJh #retailrealestate #leaseaudit #retailleasing

As Simon Property Group gets ready to buy EXPRESS with no money on the table the art of being both a landlord and a tenant management company is getting interesting. "Show me the money....Nope!" Do you think all that sales revenue from all their other mall tenants including competition doesn't come into some serious review in a deal like this? #acquistions #landlords #reits #fashionretail #showmethemoney

M&A News: Dollar Tree Stores won an intense bidding war with Dollar General to acquire Family Dollar back in 2015 for over $8B. They overpaid, and integration was problematic, thus they are closing almost 1000 Family Dollar locations next year, and will rebrand the rest of the locations to showcase the Dollar Tree brand. “This dramatic cull is the coup de grâce in the rather botched acquisition of the Family Dollar chain, which has caused Dollar Tree nothing but hassle since it was completed back in 2015,” wrote Neil Saunders, managing director of GlobalData. “Basically, almost ten years on, Dollar Tree is still sifting through the mess it inherited and has not been able to completely turn around,” Saunders said. Fortunately for Dollar Tree, it is a Fortune 500 company traded on the Nasdaq and this loss will be a blip. For SME level companies, overbidding and failing to integrate an acquisition can be catastrophic. Even if you have inhouse M&A department, it might not be good enough. An advisory firm only may not be good enough either, for depending on the size of the transaction, you may need a dedicated transition team. Which is why we have built Stony Hill Advisors, Inc. to be what it is. We want to be there for our clients and can assist with any need or circumstance. Roy Y. Salisbury Geoff Miller John Andrews Paul Visokey Rico Dinolfi Matthew DeWald Dave Severance

Bankrupt retailer Express, has announced that it would sell itself to a group led by mall owners Simon Property Group and Brookfield Properties — joining in a recent tradition of shopping-center staples being bailed out by those with one of the biggest stakes in their success. https://lnkd.in/gyVYG8PG #bankruptcy #retail #landlords #chapter11 #chapter7 #reorganization #creditorsrights #debtorcreditorsrights #landlordtenanants #landlordtenantmatters #ceosanddirectors #officersanddirectors #ceosanddirectors

https://lnkd.in/grh-GqZR #retail #fashion #clothing #stores #acquistion #buyout #Express #PhoenixRetail #Bonobos #SimonPropertyGroup #BrookfieldProperties Express filed for bankruptcy April 2024, noting in the range of $1 billion to $10 billion in assets in liabilities, at the time of filing. The acquisition group is Phoenix Retail which is comprised of WHP Global and mall owners Simon Property Group and Brookfield Properties. With 530 Express stores (Retail & Factory Outlet) in the US and Puerto Rico, the editing of the store footprint and/or closures is anticipated.

Simon Property Group would put up no capital to buy Express. That price could explain why the mall REIT is willing to jump back into ownership of retail tenants, after scaling back over the past several months. https://lnkd.in/ehhE-wGG #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

Dollar Tree (DLTR) has announced plans to close 600 Family Dollar stores in the first half of fiscal 2024, followed by an additional 370 Family Dollar and 30 Dollar Tree locations once their leases expire, totaling 1,000 closures. The decision comes amidst disappointing earnings, with Dollar Tree reporting a net loss of $1.7 billion for Q4, partly attributed to charges related to portfolio review and impairment. The closures signal a recognition of ongoing challenges in integrating Family Dollar since its acquisition in 2015, including a weak brand image and supply chain issues. Full article: https://hubs.ly/Q02s_Tb10 #dollartree #familydollar #dollarstore #retail

Last year the The TJX Companies, Inc. extended the occupancy of its Homegoods store at a #shoppingcenter in Troy, Michigan. And entered into a direct #lease with the Landlord for the very first time. Even though HomeGoods had been a tenant for at the center for over 22 years. Why? Because when HomeGoods took occupancy in 2000, it was at first a subtenant of Service Merchandise, the previous occupant of the #BigBox retail space. And later a subtenant of the investor that acquired the Service Merchandise #leasehold interest during the company’s #bankruptcy That began exactly 25 years ago - on March 15, 1999. How is it possible that #leases to a defunct #retailer are still in effect more than two decades after it permanently closed? The “value” that was in its leaseholds. ⬇

The recent bankruptcy filing of 99 Cents Only Stores sheds light on the pivotal role real estate plays in business operations. With over 300 leased locations, the impact reverberates far beyond its balance sheets. From strategic closures to potential buyouts, effective management of lease agreements becomes pivotal. As we witness one of the largest store shutdowns this year, it's evident that adaptability and strategic real estate management are paramount for survival. The saga of 99 Cents Only Stores serves as a compelling reminder of how real estate intricately intertwines with business operations, shaping not just profits, but the very future of companies. Full story below. #RealEstate #Leaseadministration LeaseHero https://lnkd.in/giz-SJaU