Hello to one and all. Thanks for tuning in to this week’s Re/Re/Recap. We’ve got lots of BIG NEWS coming at you this weekend so take a seat and buckle in. Without further ado, let’s get off to the races.
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Simon Property and Authentic Brands go on a shopping spree
The constantly unfolding drama COVID + Retail + Landlords + Bankruptcy has reached a new high. Simon Property Group (one of the largest shopping mall operators in the US) and partner Authentic Brands Group have teamed up (JV name: SPARC) to purchase not just one, but two bankrupt brands:
Brooks Brothers (for potentially $325 million)
Lucky Brand Dungarees (for potentially $140 million)
Yes, this is one of the biggest retail landlords in the country buying two of its renters. But this isn’t a new trick in the book for SPARC, which purchased Forever 21, Nautica, and Aeropostale during their respective times of distress. Simon also has a bid in for J.C. Penny. Simon reported during their recent earnings call that they continue to look for similar opportunities.
I’ve gushed about this storyline for. weeks. now. and it just keeps getting better! Stay tuned!
Pour out a stein for Stein Mart’s Chapter 11 liquidation
Stein Mart, a storied discount retailer founded in 1908 in Mississippi, will be closing most of its stores for good after a failed merger, COVID impacts, and general demand decline pre-pandemic.
The company will still attempt to sell it’s online presence and IP.
Offshore oil big boat company, Hermitage Offshore Services, files for Chapter 11
Hermitage, which owns the coolest, most intense-looking ship of all ships, has filed Chapter 11 to facilitate an in-court restructuring with its lenders. Hermitage ships provide support to offshore oil rigs, both transporting product and servicing operations.
Oil prices have been hit hard by COVID, as demand slows down significantly across the world.
Misc.
Remington: the weapons manufacturer is getting challenged in bankruptcy court on its proposed sale by existing litigants. These litigants are the families of the victims of the Sandy Hook shooting.
Foreclosure, debt, hedge funds, mezzanine, and private equity: need I say more? An interesting piece by the NYT.
Herz: “…raised $29 million selling its likely worthless stock before regulators dissuaded the bankrupt rental-car company from selling more.” - thanks WSJ.