is the largest mall developer in the United States. Public Company Incorporated: 1960 as Melvin Simon & Associates Employees: 4,700 Sales: $3.17 billion (2005) Stock Exchanges: New York Ticker Symbol: SPG NAIC: 525930 Real Estate Investment Trusts CNBC's Courtney Reagan contributed to this report.225 West Washington Street Indianapolis, Indiana 46204-3420 U.S.A. It has a market value of about $17.3 billion. Simon shares have fallen more than 60% this year. Simon on March 16 announced it had amended and extended its $6 billion revolving credit facility and term loan, giving it additional liquidity. Simon has 29 Cheesecake Factory locations, more than any of its peers, according to an analysis by RBC Capital Markets and CoStar Realty. The Cheesecake Factory, which has 294 locations in North America, has already said publicly that it will not be paying rent in April. Mall owners still have their own obligations, such as utility bills and mortgage payments, that must be met. Talks between many tenants and their landlords remain ongoing, as some are trying to work out abatements or deferrals. These landlords are grappling with the fact that countless retailers and restaurants, with their stores temporarily shut, will not be able to pay April rent. High-end mall owner Taubman, however, has sent a letter to its tenants saying they must still meet their lease obligations. Others, such as Taubman Centers, Washington Prime Group and Unibail-Rodamco-Westfield, have followed suit. Simon on March 18 announced it would be closing all of its properties temporarily, to try to help halt the spread of COVID-19. mall owners in the coming weeks, or days. Similar cuts are expected to happen at other U.S. The layoffs and furloughs at Simon show the commercial real estate industry is not immune to this, either. Nordstrom, Victoria's Secret parent L Brands, David's Bridal, Steve Madden and Designer Brands are among the other retailers that have announced their plans to furlough workers, amidst the coronavirus pandemic, where already so far at least 164,610 cases have been reported in the U.S., according to the latest data from Johns Hopkins University.Īs retailers are working to slash costs, the furloughs are more akin to "Band-Aids" than a "structural shift" in these retailers' business models, Siegel said. Urban Outfitters said Tuesday it is furloughing a "substantial" number of store, wholesale and home office employees for 60 days, effective this Wednesday. Bank, has furloughed all of its store workers in the U.S., in addition to a "significant portion" of workers in its distribution centers and related offices. Tailored Brands, which owns Men's Warehouse and Jos. and Canada, or roughly 80,000 people, pausing pay but continuing to offer "applicable benefits" until stores reopen, it said.Īscena Retail Group, which owns Ann Taylor and Loft, said it is furloughing all of its store workers and half of its corporate staff. And Penney said Tuesday that these furloughs will continue.Īpparel maker Gap is furloughing the majority of its store teams in the U.S. It had previously started furloughing workers for its supply chain division and at its logistics centers. Starting Sunday, the company said a "significant portion" of workers at its headquarters in Texas will be furloughed. Penney announced Tuesday it is furloughing the majority of its hourly store workers, effective Friday. Kohl's, meantime, said Monday it will be furloughing about 85,000 of its approximately 122,000 employees. "While the digital business remains open, we have lost the majority of our sales due to the store closures," a Macy's spokeswoman told CNBC in an emailed statement. "This seems like companies are trying to press pause on the world."ĭepartment store chain Macy's said Monday it is moving to the "absolute minimum workforce needed to maintain basic operations." It has furloughed the majority of its workforce, which is roughly 130,000 people. or adjust their expense structure to their revenue base," BMO Capital Markets analyst Simeon Siegel told CNBC. "Unlike past recessions, this does not seem like companies are trying to figure out how to run their businesses on lighter operations. The coronavirus will prove to be a bigger burden for these companies already fighting to stay in business. With a $4.3 billion debt load, Neiman Marcus has been on many analysts' so-called bankruptcy watch lists, as it is in more financial distress than some of its peers. Luxury retailer Neiman Marcus is furloughing most of its about 14,000 workers. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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