Weekly Perl: A Commercial Real Estate News Recap
Santa Monica’s Third Street Promenade is a retail relic. Can it be saved?
Once Santa’s Monica’s signature destination for shopping and dining, the Third Street Promenade is showing its age.
Its decline has left the promenade’s landlords and city officials trying to counter years of stagnation, public safety concerns and fast-changing retail norms in an attempt to breathe new life into it.
Curtain rises on formal proposal to revitalize the Civic Center
The already made public, but technically secret deal to reopen Santa Monica’s Civic Auditorium will have its first formal announcement at Tuesday’s council meeting.
Approval of an Exclusive Negotiation Agreement (ENA) with Revitalization Partners Group, LLC (RPG) is part of the consent calendar for the July 23 meeting but as the calendar is approved in bulk with no debate, there will be no discussion of the deal unless a councilmember specifically asks for it to be pulled from the group list.
Big Lots’ Vacant Stores Could Be Leased Quickly in Tight Market, Analysts Say
Last month, Big Lots CEO Bruce Thorn told investors the company was "moving quickly and aggressively" to solidify its position "as America's discount home store." Then just a week later, the retailer reported it was closing as many as 40 locations and might have to cease operations. Columbus, Ohio-based Big Lots, struggling for several years now since the pandemic's end, has a vast brick-and-mortar footprint. Its roughly 1,400 stores occupy about 46.6 million square feet of space. Some or all of that could be up for grabs if the company is forced to file for Chapter 11 bankruptcy protection or, worse-case scenario, has to liquidate.
Report: Panera Brands Explores Sale of Caribou Coffee and Einstein Bros. Bagels
Panera Brands is reportedly exploring a sale of Caribou Coffee and Einstein Bros. Bagels, according to Reuters. The deal could be valued at more than $1.5 billion. Reuters said Bank of America is running the sales process and that restaurant operators and private equity firms have shown interest in acquiring the chains. The transaction would also include Bruegger’s Bagels, Noah’s New York Bagels, and Manhattan Bagel. According to the publication, Panera wants a valuation 10 times its EBITDA of $150 million in 2024.
Krispy Kreme sells majority stake of Insomnia Cookies
Krispy Kreme is doubling down on its doughnuts business. Krispy Kreme said it has sold its majority ownership stake of Insomnia Cookies to Verlinvest and Mistral Equity Partners. The company received $127.4 million for the sale and expects to receive an additional $45 million in the coming weeks following an Insomnia Cookies refinancing of intercompany debt.
Report: Conn’s to close 100 stores, considers bankruptcy
Conn’s may be downsizing its store portfolio. The struggling, Texas-based retailer of furniture, mattresses, appliances and consumer electronics may close about 100 locations and liquidate the inventory as part of a possible Chapter 11 bankruptcy filing, reported Bloomberg.
S&P Global Ratings downgrades Walgreens, citing struggles in both pharmacy and retail
S&P Global Ratings analysts have downgraded Walgreens Boot Alliance by two notches, to ‘BB’ from ‘BBB-’, which puts the drugstore company into speculative-grade territory. Analysts Diya Iyer and Hanna Zhang cited guidance for the year “notably below” their expectations, and said “material strategic changes, limited cash flow generation, and large maturities in coming years are key risks to the business.”
Von Maur, Costco, Trader Joe’s among U.S. best retailers — by category
Quality products, reasonable prices and excellent customer service — these are the attributes that allow retailers to succeed. That’s according to Newsweek, which partnered with Statista to release the third annual ranking of "America's Best Retailers." More than 7,000 shoppers were surveyed for their opinions on retailers spanning 40 industry categories (such as apparel, electronics and supermarkets), resulting in a ranking that recognizes the 200 best places to make a purchase, according to Newsweek.
