Taking Destiny into Their Own Hands: Landlords Purchasing Distressed Retailers
June 04, 2021
Taking Destiny into Their Own Hands: Landlords Purchasing Distressed RetailersDownload Article
The retail sector, already struggling with the headwinds of e-commerce, declining in-store foot traffic and shifts in consumer behavior, was particularly hard hit by the COVID-19 pandemic.
As stores abruptly closed to comply with their states’ shutdown orders some retailers, already on the brink, were forced into bankruptcy. The landlords of many of these retailers were particularly impacted. Beyond the bankruptcies, landlords were suddenly faced with a wave of rent deferrals, abatements, and the prospect of flagship tenants potentially going out of business.
In a recent article called “Taking Destiny into their Own Hands: Landlords Purchasing Distressed Retailers”, written for the Journal of Corporate Renewal (JCR), the official publication of the Turnaround Management Association (TMA), FTI Consulting’s, Liz Park, along with Maja Zerjal Fink of Arnold & Porter on some of specific causes and implications of landlords purchasing distressed retailers.
This is an extract from the Journal of Corporate Renewal, first published in June of 2021. The whole publication is available at: "https://turnaround.org/jcr/2021/06/taking-destiny-their-own-hands-landlords-purchasing-distressed-retailers"
"The last decade has been enormously transformative for the retail industry. The soaring popularity of e-commerce, shifts in consumer behavior and demographics, and declining store foot traffic have pushed many traditional brick-and-mortar retailers to the brink, and some were tipped over into bankruptcy, including household names like Sears and Toys R Us."
Posted with permission from the June 2021 Journal of Corporate Renewal, ©2021 Turnaround Management Association.