NEW YORK CITY — Peloton Interactive Inc. (NASDAQ: PTON), a provider of subscription-based home exercise equipment and routines, reported a 172 percent increase in total revenue during the fourth quarter relative to that period in 2019. With many commercial gyms still operating at reduced capacities and numerous fitness centers at office and apartment buildings still closed, Peloton saw its connected fitness subscriptions and paid digital subscriptions grow by 113 and 210 percent, respectively. The New York City-based company now has a total membership base of more than 3.1 million people. In addition, Peloton operated 95 showrooms across the world at the end of its fiscal fourth quarter, which CNBC reports ended on June 30, up from 74 a year ago.
AUSTIN, TEXAS — American Campus Communities Inc. (NYSE: ACC), the nation’s largest owner and manager of student housing properties, reported that its portfolio had an occupancy rate of 90.3 percent as of Sept. 11, 2020. The Austin-based REIT posted a same-store portfolio-wide occupancy rate of 97.4 percent a year ago, netting a year-over-year decline of 710 basis points. CEO Bill Bayless said that the company was encouraged by overall leasing activity in June and July but remains concerned about whether in-person classes will prevail throughout the fall semester. ACC has already felt some of this impact, Bayless said, noting that the delay or cancellation of on-campus classes stemming from the COVID-19 pandemic had already caused a 16 percent year-over-year drop in occupancy across properties that primarily serve first-year students. As of mid-2020, ACC owned 166 student housing properties totaling 111,900 beds across the country.
NEW YORK CITY — Century 21, a New York City-based department store chain with a 60-year operating history, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. The retailer will soon begin the process of ceasing operations and will close all 13 of its stores, which are located in New York, New Jersey, Pennsylvania and Florida. The decision follows nonpayment by Century 21’s insurance providers of $175 million due under policies put in place to protect against losses stemming from business interruption such as those experienced as a direct result of the COVID-19 pandemic.
LOUISVILLE, KY. — Papa John’s International (NASDAQ: PZZA) has signed a store development agreement that will allow the Louisville-based pizza chain to open 49 new stores in the Philadelphia and Southern New Jersey areas between 2021 and 2028. Franchisee HB Restaurant Group, which currently owns and operates 43 Papa John’s locations in the mid-Atlantic, will also own and operate the new stores.
NEW YORK CITY — Tiffany & Co. (NYSE: TIF) has filed a lawsuit in the Court of Chancery of the State of Delaware against LVMH Moët Hennessy-Louis Vuitton (LVMH) as part of an effort to force the French conglomerate to complete its $16.2 billion acquisition of the New York City-based jeweler. The lawsuit refutes LVMH’s suggestions that it can avoid completing the acquisition by claiming Tiffany has undergone a material adverse effect, meaning the jeweler had breached the terms of the merger agreement. Both CNBC and The Wall Street Journal have reported that LVMH is attempting to scrap the deal by claiming that Tiffany failed to follow certain management procedures during the pandemic, such as continuing to distribute dividends to shareholders despite declining profitability, thus misrepresenting its finances and nullifying the deal. As of late 2019, LVMH, based in Paris, owned more than 70 luxury brands in the clothing, cosmetics, jewelry and spirits industries, including Dom Pérignon champagne, Givenchy clothing and perfume and Christian Dior fashion and perfume. New York City-based Tiffany & Co., which was founded in 1837, operated about 300 stores worldwide and employed some 14,000 people as of late 2019.
PLANO, TEXAS — Brookfield Property Group and Simon Property Group have agreed to acquire the retail and operating assets of J.C. Penney Co. for $1.75 billion at a bankruptcy auction. As part of the sale agreement, the three companies will form a property holding company (PropCos), which will include 161 of the J.C. Penney real estate assets and all of its owned distribution centers. The Plano-based retailer’s Ad Hoc Group of First Lien Lenders will own PropCos. J.C. Penney filed for Chapter 11 bankruptcy in mid-May and restructured 90 percent of its debt with its lenders. Brookfield and Simon enter into the bankruptcy auction as the stalking-horse bidders. The Plano-based retailer expects the auction to close before the 2020 holiday season. “As we continue to move through the sale process, our focus will remain on serving our customers and working seamlessly with our vendor partners,” says Jill Soltau, CEO of J.C. Penney. “We have been a trusted partner to all of our stakeholders since 1902, and we expect to continue that track record for decades to come under the J.C. Penney banner.” The auction is being held through the U.S. Bankruptcy Court for the Southern District of Texas. During its …
CHESTNUT HILL, MASS. — A group of investors led by WS Development has acquired The Paper Store, a family-owned and operated Hallmark Gold Crown retailer with stores throughout the Northeast. The Paper Store filed for Chapter 11 bankruptcy in mid-July due to the impact of COVID-19 regulations shuttering its 86 stores for several months. Following a successful restructuring of debt, The Paper Store, which employs about 2,000 people, will continue to operate its stores. WS Development holds a portfolio of 95 commercial properties totaling more than 27 million square feet across the country.
ATLANTA — John Calvin “Jack” Portman III, chairman and CEO of Atlanta-based Portman Architects, has died at age 71 due to natural causes. Portman is the son of famous Atlanta architect John Calvin Portman Jr. Portman III started at then-John Portman & Associates in 1973. Portman III took over leadership of Portman Architects following the death of his father in 2017. Portman III earned a Bachelor of Architecture from Georgia Tech and a Master of Architecture from Harvard University’s Graduate School of Design. He is survived by his five children; his mother, Jan Portman; four siblings; and five grandchildren. Currently, Portman Architects has six ongoing projects in Midtown Atlanta, Near Hartsfield-Jackson Atlanta International Airport and in Salt Lake City.
NEW YORK CITY — New York City-based DeSimone Consulting Engineers has purchased RRC Engineering, a Plainville, Mass.-based firm that specializes in the design of data centers. RRC’s founder and principal Robert Chartrand will continue to lead the firm from its current office, while DeSimone will also continue to operate its regional office from 31 Milk St. in Boston. DeSimone was founded in 1969 and provides engineering solutions across a range of commercial asset classes.
HOUSTON — Houston-based investment firm MLB Capital Partners has launched MLB Commercial Real Estate, a full-service brokerage division. A team led by Todd Mason and Jeff Lindenberger, both of whom previously worked at Avison Young, will head the new branch. Specialty services will include tenant and landlord representation, investment sales and leasing for the industrial and self-storage sectors for the greater Houston market.