ANAHEIM, CALIF. — Disneyland Resort has delayed the opening of its theme parks and resort hotels in Anaheim based on the State of California’s announcement that it will not issue theme park reopening guidelines until sometime after July 4. The company plans to announce a revised reopening date once government officials approve a phased reopening. Downtown Disney District, an outdoor shopping center at the resort, will reopen on July with health and safety protocols in place for employees and guests. This opening was approved with the restaurants and retail openings throughout California. Additionally, Disney and The Master Services Union, which represents retail employees at Downtown Disney District, reached an agreement for members to return to work at this location. Disney will negotiate agreements with its unions and agree to enhanced safety protocols that will allow the company to responsibly reopen Disneyland, the company says.
PLANO, TEXAS — J.C. Penney Co. has revealed the locations of 13 additional stores it will permanently close, including seven in Michigan, as part of its Chapter 11 bankruptcy filing. The Plano-based retailer says the other six locations set to close include two in Washington state, two in New York, one in California and one in Maryland. J.C. Penney filed for Chapter 11 protection on May 15 and unveiled a list of 154 stores in late May that were set to close. Multiple news outlets report that going-out-of-business sales at the 13 locations are expected to begin on or around July 3. According to The Wall Street Journal, mall owner Simon Property Group is teaming up with shopping center owner Brookfield Property Partners to explore the possibility of acquiring J.C. Penney Co. According to Business Insider, the 13 stores closing include: 201 S. Washington St, Owosso, Michigan; 125 S. Michigan Ave, Big Rapids, Michigan; Bay City Town Center, 4129 E Wilder Road, Bay City, Michigan; Greenville West Mall, 300 Greenville W. Drive, Greenville, Michigan; Meridian Mall, 1982 W. Grand River Ave., Okemos, Michigan; Mt. Pleasant Shopping Center, 2231 S. Mission Road, Mt Pleasant, Michigan; Northtown Village, 1680 Wright Ave., Alma, Michigan; …
CALABASAS, CALIF. — William Millichap, co-chairman of Marcus & Millichap whose leadership and innovation helped pave the way for the company to become a national player and household name in commercial real estate, has passed away at the age of 76 following a year-long battle with cancer. The company made the announcement Tuesday in a press release highlighting his career accomplishments. Millichap joined the company, then known as G.M. Marcus Co., as an investment broker shortly after its founding in 1971. After serving as a regional manager of the Palo Alto, Calif., office in the mid-1970s, Millichap went on to become president and a director of the company from 1985 to 2000. He was co-chairman of the board until his death. “The company’s formative years benefited greatly from Bill’s push for innovation, including our training programs, professionalization of the industry and adoption of technology — key building blocks of the firm’s market leadership,” says George Marcus, founder and chairman of the Calabasas-based company. “Bill was the truest of friends that one could ever have and a real partner in good times and challenging ones,” adds Marcus. “He was a unique and exceptional leader, coach and innovator. All who knew him …
MIAMI — Maskco Technolgies Inc. has teamed with SharperTek to create 75 million N95 respirator masks over the next two years beginning in November. Under terms of the agreement, Pontiac, Mich.-based SharperTek will send 56 units of its assembly lines to Maskco Technologies’ production facilities in Miami, where the masks will be produced. The partners are awaiting certification from the National Institute for Occupational Safety and Health (NIOSH). A group of healthcare providers created Maskco Technologies in April when they realized the need for more N95 masks amid the COVID-19 outbreak. SharperTek has been manufacturing automated ultrasonic systems since 2006.
LOS ANGELES — NAIOP, the commercial real estate development association, has selected Los Angeles-based Kilroy Realty Corp. as the 2020 Developer of the Year, which is the association’s highest honor. The award will be presented during NAIOP’s CRE.Converge conference in Las Vegas this October. Kilroy is one of the West Coast’s foremost developers and landlords, with a major presence in San Diego, greater Los Angeles, San Francisco Bay Area and the Pacific Northwest. The company owns and manages more than 14 million square feet office, mixed-use, residential and life science projects. with over 7 million square feet of projects under construction or in the development pipeline. In granting the award to Kilroy, NAIOP cited the company’s innovative approach to sustainable, modern work environments that drive creativity, productivity and employee retention for some of the world’s most influential digital media, entertainment, health, research, science and technology companies. This annual award recognizes a developer demonstrating leadership and innovation in commercial real estate. Nominees must be a principal NAIOP member in good standing and are judged by a panel of industry peers.
DALLAS — The Communication Workers of America (CWA) has announced that Dallas-based AT&T has informed the telecommunications and IT union its plans to permanently shutter 250 AT&T Mobility and Cricket Wireless stores. The move would impact 1,300 retail jobs. There are currently more than 16,000 AT&T retail locations in the United States, including authorized retailers and company-owned stores and kiosks. CWA also reports that A&T plans to cut 3,400 technician and clerical jobs across the country over the next few weeks. The Dallas Morning News reports that AT&T had to inform CWA, which represents 100,000 AT&T workers, of the planned job cuts due to a collective bargaining agreement covering the workers. The newspaper also reports the job cuts and store closures are part of AT&T’s $6 billion cost-cutting plan. According to CWA, AT&T’s CEO Randall Stephenson pledged in 2017 to create 7,000 new jobs if President Donald Trump’s corporate tax cuts passed. Instead, a CWA review of AT&T’s quarterly reports shows that the company has cut over 41,000 jobs, not including the planned cuts announced June 16.
SAN RAMON, CALIF. — Fitness center retail chain 24 Hour Fitness has filed for Chapter 11 bankruptcy protection stemming from revenue losses during the COVID-19 pandemic. The San Ramon-based company expects to secure $250 million in debtor-in-possession financing, which is subject to court approval. The fitness chain has also announced its intention to permanently close 132 of its 300-plus gyms. In California alone, 24 Hour Fitness will shutter 41 locations, and in Texas another 26 will permanently close as the company will focus on reopening its other gyms across the country. “If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11,” says Tony Ueber, CEO of 24 Hour Fitness. “With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders.” Although Ueber says the COVID-19 pandemic is the main culprit in the company’s struggles, the retailer’s debt load is also a contributing factor. Brad Umansky, president of Progressive Real Estate Partners, says that the retailer’s ownership group, including private equity firm AEA Investors, hampered 24 Hour Fitness from operating to the best of its ability …
DOVER, DEL. — Lululemon (NASDAQ: LULU), a provider of athletic apparel that is based in Vancouver, British Columbia, but incorporated in Delaware, has now reopened 295 of its 489 stores, or roughly 60 percent of its worldwide locations. The company reported net revenue of $652 million in its fiscal first quarter, which ended May 3, compared with $785 million during the same period a year ago, a 17 percent decline. Lululemon closed all of its stores in mainland China following the outbreak of COVID-19 and subsequently shuttered its Europe and North America stores in March. The company noted that although it was forced to close all stores at some point, strong sales from its e-commerce platform helped to mitigate the decrease in revenue. Lululemon said in the filing that it would not provide financial projections for future quarters, but that it ended the first period with $823 million in cash, compared to $576 million in cash at the end of the first quarter of 2019. Lululemon’s stock price opened at $302.84 per share on Friday, June 12, up from $170.89 per share a year ago.
NEW YORK CITY — Extell Development Co., a New York-based developer, has partnered with delivery service startup Avo to offer product delivery services as an amenity at One Manhattan Square, Extell’s 815-unit residential building in Lower Manhattan. Avo will provide residents with free, same-day delivery of a range of products including groceries, electronics, household goods and personal care items from its own online store. The service will require no minimum order size and will be facilitated through “Experience by Extell,” the developer’s in-house lifestyle management platform. Avo entered the New York market last year, primarily servicing office buildings, but has accelerated its residential partnerships during the COVID-19 outbreak.
SEATTLE — Starbucks Coffee plans to accelerate the transformation of its store portfolio across the United States amid the ongoing COVID-19 pandemic. Over the next 18 months, the coffee chain will increase convenience-led formats in company-operated locations with drive-thru and curbside pickup options, as well as Starbucks Pickup location. UPDATE (June 11): In a letter to shareholders, released through an SEC filing, Starbucks announced that it plans to close approximately 400 company-operated U.S. stores over the next 18 months as part of this new focus on drive-thru and pickup. In that same letter, Starbucks notes that it plans to open 300 new stores this year, though that is down from its initial plan of 600. Even before the COVID-19 outbreak, 80 percent of Starbucks transactions were “on-the-go” sales, according to the letter. Due to the shift in the retail environment because of amid the global pandemic, including store closures and decreased customer sales, Starbucks posted a $3.2 billion loss in revenue during fiscal third quarter and expects same-store sales in the United States and Canada to decline 10 percent to 20 percent for the full fiscal year, according to CNBC. The company’s U.S. store portfolio transformation includes the expansion of …