CEO of biggest US mall owner says retail industry is ‘reaching the bottom’ of bankruptcies
The CEO of the biggest mall owner in the U.S., Simon Property Group, says the retail industry looks to be “reaching the bottom” of a tumultuous wave of bankruptcies.
- The CEO’s comments come on the heels of Forever 21 and Barneys New York, among other retail chains, filing for bankruptcy this year.
- The level of bankruptcies is rivaling the pace of 2017, and there have been thousands of store closures announced.
- Simon Property Group CEO David Simon says the company will be OK as it finds new tenants and makes numerous investments to better understand e-commerce.
“We are having a high bankruptcy year. ... There’s no denying that,” David Simon told analysts during a post-earnings conference call on Wednesday morning. “But I think we’re kind of reaching the bottom in ... 2019 on that stuff. It’s rivaling what happened in 2017. So, it’s not like something that we haven’t experienced before. But we know [what] we have to do.”
Simon shares were last down about 3.5% Wednesday afternoon, having fallen about 12% this year.
The CEO’s comments come on the heels of Forever 21 and Barneys New York, among other retail chains, filing for bankruptcy this year. So far in 2019, U.S. retailers have announced 8,993 store closures and 3,780 store openings, compared with 5,844 closures and 3,258 openings in all of 2018, according to a tracking by Coresight Research. The consulting firm expects closures could still hit a record 12,000 by the end of this year.....MORE
“As we put together our plans for next year, I think we’ll be OK,” Simon said. “We’re hustling. We’re finding new tenants.”....
