Company News

Clothing Store Giant Ascena Retail Group Files for Bankruptcy, Plans to Close ‘Significant’ Number of Stores

by Alex Tostado July 24, 2020

MAHWAH, N.J. — Ascena Retail Group (NASDAQ: ASNA), the parent company of clothing brands Ann Taylor, Justice, Loft, Lane Bryant, Catherines and Lou & Grey, has filed for voluntary Chapter 11 bankruptcy in the United States Bankruptcy Court for the Eastern District of Virginia. The Mahwah-based company has reopened 95 percent of its stores since the COVID-19 outbreak, though Ascena cited the pandemic as “severely” disrupting the company’s financial foundation. The exact number of permanent store closings was not disclosed, but the company said it will close a “significant” number of Justice stores, as well as a select number of Ann Taylor, Loft, Lane Bryant and Lou & Grey stores. Additionally, the company will permanently close all stores across all brands in Puerto Rico, Mexico and Canada. “The meaningful progress we have made driving sustainable growth, improving our operating margins and strengthening our financial foundation has been severely disrupted by the COVID-19 pandemic,” says Carrie Teffner, interim executive chair of Ascena. “As a result, we took a strategic step forward today to protect the future of the business for all of our stakeholders.” Ascena also announced it will close all Catherines stores and has entered into an agreement with City Chic …

July 24, 2020

California Company News Leasing Activity Retail Top Stories Western

Parent Company of Men’s Wearhouse, Jos. A. Bank to Shutter Up to 500 Stores, Cut Staff by 20 Percent

by John Nelson July 21, 2020

FREMONT, CALIF. — Tailored Brands, the parent company of professional menswear retailers Men’s Wearhouse and Jos. A. Bank, has announced a corporate restructuring that entails closing up to 500 stores. The Fremont-based firm says the “unprecedented and industry-wide” disruption caused by the COVID-19 outbreak was the catalyst behind the move. Tailored Brands has identified the 500 stores but did not disclose the retailers, locations or timing of those closures. Other brands in Tailored’s umbrella include K&G and Moores Clothing for Men. The company had 1,445 U.S. stores as of May 2, 2020 totaling 9.1 million square feet. Additionally, Tailored Brands (NYSE: TLRD) plans to cut expenses by reducing its staff by 20 percent by early August. The company expects severance payments and other termination costs to total $6 million. The economic harm stemming from the COVID-19 pandemic is having an outsized impact on the company’s revenue stream. In its first-quarter fiscal business update, Tailored Brands reported that for the period between Feb. 1 and May 2, net sales were down 60.4 percent year-over-year. Its e-commerce revenue, which includes rental services, was down 31.9 percent during the same period. Going forward the company will focus on its e-commerce platform and revised …

July 21, 2020

Company News Florida Southeast

Office Depot Donates $1.5M to Feeding America’s COVID-19 Response Fund

by Alex Tostado July 20, 2020

BOCA RATON, FLA. — Office Depot, a wholly owned subsidiary of The ODP Corp., is providing $1.5 million to Feeding America, a domestic hunger-relief organization, in support of its COVID-19 Response Fund to help local food banks across the country distribute more than 1.3 billion pounds of food to communities in need. Feeding America’s COVID-19 Response Fund enables its network of 200-member food banks to secure the resources they need to serve the most vulnerable members of their communities. According to a recent survey by Feeding America, nearly 40 percent of those served by the network are seeking food assistance for the first time. Households with children are more likely to experience food insecurity, with a report by Feeding America finding that the number of food-insecure children could escalate to 18 million, an all-time high, due to the COVID-19 health crisis. “We are proud to support the Feeding America network of food banks as it works tirelessly to address the increased demand for food assistance resulting from the COVID-19 pandemic,” says Gerry Smith, CEO for Boca Raton-based Office Depot and The ODP Corp. “Now more than ever, we are committed to strengthening local communities and hope that this donation will help to provide relief for …

July 20, 2020

Company News Retail Texas

Younger Partners Launches New Division for Retail Acquisitions

by Taylor Williams July 20, 2020

DALLAS — Younger Partners, a Dallas-based full-service real estate firm, has launched a new division for the acquisition of retail properties throughout the metroplex. Micah Ashford, a 20-year industry veteran and former partner at retail investment and brokerage firm Dunhill Partners, will lead the new division. Younger Partners considers the creation of a retail acquisitions team to be a critical part of its long-term strategy and believes that opportunities to buy distressed assets and create value will present themselves in the aftermath of the COVID-19 pandemic.

July 20, 2020

California Company News Texas Top Stories Western

Chevron Agrees to Acquire Noble Energy for $5B in Oil Industry Merger

by Taylor Williams July 20, 2020

SAN RAMON, CALIF. — Chevron Corp. (NYSE: CVX) has agreed to acquire Houston-based exploration firm Noble Energy (NASDAQ: NBL) in an all-stock transaction valued at $5 billion, or $10.38 per share. Under the terms of the agreement, Noble Energy shareholders will receive 0.1191 shares of Chevron common stock for each share of Noble Energy stock they own. Inclusive of debt, the deal carries a total enterprise value of $13 billion. The price represents a premium of roughly 12 percent on the weighted average of Noble Energy’s closing stock prices for the 10-day period ending July 17. Following the closing of the deal, which is expected to occur in the fourth quarter, Noble’s shareholders will own about 3 percent of the new entity. Executives at San Ramon, Calif.-based Chevron cited access to Noble’s assets in key domestic production sites like Colorado’s D-J Basin and Texas’ Permian Basin, as well as its international facilities in Israel and West Africa, as major incentives behind the acquisition. For example, Noble’s portfolio includes nearly 92,000 contiguous acres for drilling and exploration in the Permian Basin . In addition, in June, the company was awarded exploration rights to 800,000 acres of drillable land in the Western …

July 20, 2020

Company News Retail Texas

J.C. Penney Cuts 1,000 Jobs, Begins Talks With Potential Buyers

by Taylor Williams July 16, 2020

PLANO, TEXAS — J.C. Penney Co. announced on Wednesday that it would reduce its workforce by approximately 1,000 corporate, field management and international positions as part of its store optimization and restructuring plan. The Plano-based retailer, which employs about 90,000 people worldwide, filed for Chapter 11 bankruptcy in May and announced plans to close about 150 stores two weeks later. According to CNBC, J.C. Penney has reached an agreement with its creditors to extend submission of its new business plan and identify potential investors in the business. The network reports that mall developers Simon Property Group and Brookfield Properties are both in talks to buy the 118-year-old retailer, as are Sycamore Partners and Authentic Brands, the respective parent companies of department stores Belk and Barneys.

July 16, 2020

Company News New York Northeast Retail

RTW Retailwinds, Parent Company of New York & Co., Files for Chapter 11 Bankruptcy

by Taylor Williams July 15, 2020

NEW YORK CITY — RTW Retailwinds Inc. (RTW), parent company of women’s apparel chains New York & Co., Fashion to Figure and Happy x Nature, has filed for Chapter 11 bankruptcy protection along with its subsidiaries. The filing came Monday in the U.S. Bankruptcy Court for the District of New Jersey. The company expects to close a significant portion, if not all, of its 378 brick-and-mortar stores and has launched a store closing and liquidation process. In the near term, however, New York City-based RTW will continue to operate its business and reopen stores that were previously temporarily closed due to the COVID-19 pandemic. As of July 13, 92 percent of its brick-and-mortar retail and outlet locations across 32 states had reopened. RTW, which was first incorporated in 1918, says that the bankruptcy will enable it to maintain operations in the ordinary course of business, including the payment of employee wages and benefits, payment of suppliers and vendors and the use of cash collateral.

July 15, 2020

Company News Massachusetts Northeast Restaurant Retail

MGM Reopens Casino in Springfield, Massachusetts, at 25 Percent Capacity

by Taylor Williams July 14, 2020

SPRINGFIELD, MASS. — MGM Resorts International (NYSE: MGM) has reopened its casino in the western Massachusetts city of Springfield at 25 percent of its original capacity due to the COVID-19 pandemic. As of July 13, there were 112,000 confirmed coronavirus cases in the state of Massachusetts and 8,330 deaths. At this time, the resort’s 240-room hotel and spa remain closed, limiting the amenity options for guests to the 125,000-square-foot casino and three of the property’s food and beverage establishments, which will also operate at limited occupancies. Valet parking is also unavailable at this time. Employees and guests are required to wear masks in public settings, and plexiglass barriers have been installed in certain areas where social distancing is difficult to maintain. MGM has also set up handwashing stations throughout casino floor and will use digital menus as its restaurants to minimize sharing of surfaces.

July 14, 2020

Company News New Jersey Northeast

Colliers International Acquires New Jersey-Based Engineering Firm Maser Consulting

by Taylor Williams July 14, 2020

RED BANK, N.J. — Colliers International has completed its acquisition of Maser Consulting, a design and engineering firm based in Red Bank, New Jersey. Maser’s senior leadership team will continue to drive operations and will retain a significant equity stake in the business going forward. The operations will be rebranded as Colliers Engineering Services in the first half of 2021. Maser employs more than 1,000 people across 34 offices in 12 states.

July 14, 2020

Company News Retail Top Stories Washington Western

Sur La Table Files for Chapter 11 Bankruptcy, Plans to Close 56 Stores

by Katie Sloan July 10, 2020

SEATTLE — Privately held kitchenware retailer Sur La Table has filed for Chapter 11 bankruptcy protection. The Seattle-based company is set to close 56 of its 121 stores, according to reports by The New York Times, making it the latest retailer to struggle under strain caused by the COVID-19 pandemic. Following store closures and bankruptcy proceedings, Sur La Table has entered into a stalking horse agreement — or an initial bid on the assets of a bankrupt company — to affiliates of New York City-based Fortress Investment Group. The private equity firm is working with Los Angeles-based STORY3 Capital Partners, a private equity and debt investor that has previously invested in retailers such as Hot Topic, Nordstrom, Oakley, True Religion and West Marine. Jason Goldberger, CEO of Sur La Table, says the company will focus on its successful stores, online platform and in-person cooking classes post-sale. “This sale process will result in a revitalized Sur La Table, positioned to thrive in a post-COVID-19 retail environment,” says Goldberger. “Sur La Table will have a balance sheet and retail footprint optimized to position the company for a bright future that continues our nearly 50-year tradition of offering high-quality cooking products and experiences …

July 10, 2020

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