Last week, Massey announced that it was planning to abandon its core position as an anchor store in several shopping malls and move into smaller, standalone stores in an effort to gain a foothold.
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Experts say collection of other tenants in this way would threaten the existence of malls.
When Forever 21 filed for bankruptcy in the months before the epidemic, Simon and Brookfield pitched at $ 81.1 million to buy the fashion retailer, leaving stores open at 100 mall locations.
According to the report, the huge price tag for JCPenney will provide a combination of cash and debt.
JCPenney’s profits plunged several years before the epidemic spread to a 118-year-old department store that went bankrupt in May. CNN reported that the series has consistently struggled to pay its bills and has not made a profit since 2010.
After the bankruptcy filing, the company began closing more than a hundred of its 800 remaining locations.
The pandemic closure has affected many retailers, particularly high-end department store chains that operate as anchor tenants in shopping malls around the country.
And with the holiday shopping season just around the corner, malls are struggling as before.
Large department stores such as JCPenney have always been a mainstay in malls as they lure retail traffic to smaller shops, kiosks and food courts, providing much needed financial stability.
But the epidemic has done what has always been a definite business model.
As millions of people have lost jobs or continue to work from home, the demand for clothes and apparel – the main draw of JCPNE – has all but disappeared.
According to CNN, a record 9,300 stores closed last year and closings could be around 25,000 in 2020.
Additionally, the rise of consignment and thrift stores – along with a dramatic boom in online shopping – led many consumers to step away from larger stores.