- How Gyms Moved to the Front of Trump’s Re-Opening Plan “When President Donald Trump revealed his guidelines for "opening up America again" last week, among the bolded names of businesses and institutions that could reopen were restaurants, movie theaters and places of worship -- so long as they adhered to strict social distancing protocols. Tucked near the bottom of the list, right above a warning that bars should stay closed, was a curious inclusion: gyms. While an integral part of many Americans' routines, gyms and fitness clubs would seem to present a particular risk for contact spread of a contagious virus.” (CNN)
- Luxury Hotel Company Is Biggest Beneficiary of Small Business Funds “Hotels, luxury resorts and management companies that funnel money back to a single company have secured about $53 million in federal virus aid, the largest known amount to benefit one firm and the latest example of how the government’s small business relief program is also helping big companies. Ashford Inc., an asset management firm based in Dallas, makes money partly by advising two real estate investment trusts: Ashford Hospitality Trust and Braemar Hotels & Resorts.” (The New York Times)
- Construction Workers Are Grateful for Jobs but Fearful for Their Health “For Hugo Dominguez, a construction worker in the coastal town of Lynn, Mass., the fear is always there. He leaves his apartment wearing a surgical face mask and gloves, then switches to an industrial mask at the construction site. Once back home, he goes straight to the bathroom and strips off his clothes. Mr. Dominguez worries about bringing the virus home and infecting his wife and two children. He would prefer to stay off the job until the worst of the coronavirus pandemic passes, but he needs the money to feed his family.” (Wall Street Journal, subscription required)
- Gap Stops Paying Rents, Says It May Not Have Enough Cash for Operations “Gap warned on Thursday it may not have enough cash flow to sufficiently fund its operations as stores remain shut because of the coronavirus pandemic. The apparel retailer said in a securities filing that it must take further actions to find liquidity over the next 12 months, such additional job cuts and new debt financing. It said other measures could include reducing receipts and orders for merchandise,and extending the terms for payment of goods and services.” (CNBC)
- Amazon Employees Shared an Event Invite to Discuss How the Company Treats its Workers. Then It Disappeared “Several of Amazon’s corporate employees are urging thousands of their colleagues to defy their employer by taking this Friday off work en masse to instead gather virtually and discuss how to push for more rights for the company’s warehouse workers during the Covid-19 pandemic. Now, several Amazon employees have told Recode that invitations to the virtual event have mysteriously disappeared from their calendars and inboxes.” (Vox)
- Victoria’s Secret and Sycamore Partners Play ‘Let’s Break a Deal’ “Though the pandemic ‘is an international tragedy and health emergency,’ says Stefan Kaluzny, Sycamore’s founder and C.E.O., ‘we are equally certain that it does not excuse the performance of L Brands’ obligations.’ This could become a popular get-out, the Deal Professor, Steven Davidoff Solomon, explained in DealBook earlier this month. The auto parts maker BorgWarner warned it might try a version over its deal for Delphi. (The New York Times)
- Managing Real Estate Expenses in the Coronavirus Economy “Business owners are asking for rent reductions, deferrals, abatement and potential restructurings. So far, landlords seem to be willing to discuss alternative rent arrangements – but is it entirely up to them? While we have yet to hear a collective voice, lenders may have the upper hand in lease renegotiations. Market dynamics work best when marketplaces are in equilibrium and market actors, landlords and tenants share similar expectations. In the current changing market, “normal” expectations are changing day by day and only a real estate professional who is constantly active in the market knows best the pulse of the moment.” (GlobeSt.com)
- California Pizza Kitchen Seeks Restructuring Deal “California Pizza Kitchen Inc. is seeking to restructure its debt to avoid a possible bankruptcy filing, according to people familiar with the discussions, as the coronavirus pandemic decimates sales at casual-dining chains. The Los Angeles-based company has hired restructuring firm Alvarez & Marsal Holdings LLC, along with Guggenheim Partners, to facilitate deal talks with its lenders, the people said. California Pizza Kitchen’s lenders have hired FTI Consulting Inc. and Gibson, Dunn & Crutcher LLP to represent them legally, some of the people said.” (Wall Street Journal, subscription required)
- Nursing Homes Want To Be Held Harmless for Death Toll. Here’s Why Newsom May Help Them “For weeks, nursing homes have been the epicenter of coronavirus outbreaks and deaths in California, making them prime targets for civil lawsuits and even criminal prosecutions. But the nursing home industry has some leverage to fend off legal action: California needs these nursing homes to relieve pressure on hospitals statewide. Well aware of that reality, the healthcare industry has been lobbying Gov. Gavin Newsom to sign a sweeping order it has drafted that would shield nursing homes and senior care facilities, as well as doctors and hospitals, from lawsuits and prosecutions. The order is similar to directives issued by other governors nationwide.” (Los Angeles Times)
- Target Is Crushing Same-Store Sales, Just Not in its Stores “The big-box retailer reported on Thursday that same-store sales over the past three months so far have surged amid a sharp increase in online sales as shoppers seek to limit time inside stores or avoid in-person trips outright amid the coronavirus outbreak. In its fiscal first quarter, which began in early February, same-store sales rose by more than 7% from a year ago vs. a 1.5% gain in its fiscal fourth quarter, the company said, as a "mid-teens" percentage decline in store sales was more than offset by a near four-fold jump in digital sales.” (The Street)
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