1. Ann Taylor
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Ascena Retailer Group, the parent company of the women’s apparel retailer, filed for chapter 11 bankruptcy in July, and will also be closing one of its Central Ohio offices as it continues to navigate bankruptcy. Ann Taylor stores have failed to pay any of their rent over the last three months. Meanwhile, landlords who rent space to Ascena Retail Group are objecting to its request for a two-month deferral on rent payments, reports Bloomberg. The landlords said in court papers the rent deferral request isn’t reasonable because most of the company’s stores are operating despite the pandemic. The landlords argued the request implies Ascena doesn’t intend to pay rent and will use the deferral period to seek lease concessions.
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Another retailer from under the Ascena Retailer Group umbrella, Justice has also not paid rent over the last three months. Spokespeople for the company said the pandemic had forced it to temporarily close all its stores and created ongoing business uncertainty.
3. Lane Bryant
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A third retailer under the Ascena Retail Group holdings, the women’s clothing store chain has not paid any of its rent over the last three months either.
The apparel and accessories retailer recently reported a 50 percent plunge in revenues to $43.8 million for the three months ended May 2. The retailer paid none of its rent in August, after paying 80.09 percent in July and 26.33 percent in June. In its earnings release, Francesca’s said it had "substantially completed" negotiations with landlords on rent abatements and deferments, which it said would have a "positive impact on the company's cash flow" for fiscal 2020. Sales are expected in the range of $67 million to $71 million, assuming a comparable sales decrease of 16 percent to 11 percent.
5. Century 21 Stores
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Century 21, the discount designer department store, plans to close all 13 of its stores across New York, New Jersey, Pennsylvania, and Florida. The chain has filed for bankruptcy, stating that the pandemic, plus the failure of its insurance companies to pay any of the claims related to it, pushed it over the edge, according to a statement released by the company. Century 21 paid none of its rent in August, after paying 100 percent of its rent in July and none of its rent in June.
6. 24 Hour Fitness
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24 Hour Fitness filed for bankruptcy in June after its gyms shut down amid efforts to contain the coronavirus pandemic. The gym paid 11.73 percent of its rent in August, 15.66 percent of its rent in July and 8.89 percent of its rent in June. The company is using its bankruptcy proceedings to restructure its $1.4 billion in debt.
7. Regis Corp.
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The hair salon operator estimates its lost a total of $105 million due to salon closures related to the COVID-19 pandemic, but most of its salons have already reopened. Regis salons paid 21.88 percent of their rent in August, 24.58 percent of their rent in July and 27.15 percent of their rent in June.
8. The Gap
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The Gap posted a sales decline of 18 percent for May, June and July compared with the same period a year ago. The retailer paid 22.82 percent of its rent in August, 15.83 percent of its rent in July and 6.22 percent of its rent in June. Gap recently closed most of its San Francisco stores, including its flagship location at Market and Powell Streets, while also closing an additional 225 Gap and Banana Republic stores around the country. It plans more store closures in 2021.
9. Victoria’s Secret
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The women’s apparel retailer paid 23.39 percent of its rent in August, after paying 13.46 percent of its rent in July and 11.70 percent of its rent in June. Within the Victoria’s Secret lingerie division, sales fell 39 percent in the U.S. and Canada to $977.5 million.
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Some movie theater chains across the country have begun to announce reopening dates, but others still face a red light. Cinepolis, a Mexican movie theater chain, paid 24.88 percent of its rent in August, 65.22 percent of its rent in July and 54.42 percent of its rent in June. Cinepolis USA Chief Executive Luis Olloqui said his theaters would lose money by operating under current social distancing limits.
1. J.C. Penney
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J. C. Penney's last profitable year was in 2010, and its net losses have totaled nearly $5 billion since then. Nevertheless, the department store chain paid all of its rent for the past two months, after paying 3.52 percent of its rent in June. The 118-year old retailer, which filed for bankruptcy protection in May, announced an agreement last week to sell its retail operations to Brookfield Property Group and Simon Property Group, two major mall operators that were among its biggest creditors. The company's real estate holdings will be folded into a separate REIT which is to be owned by its lenders, reports CNN. The agreement will allow the company to keep 690 stores open, while it sets about closing another 149 stores by the end of the year.
2. Sportsman’s Warehouse
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Sportsman’s Warehouse’s earnings jumped in the second quarter as sales rose 79 percent, reaching $381.0 million, compared to $211.8 million in the second quarter of 2019. Same-store sales jumped 61 percent in the quarter, led by firearms and ammunition purchases, which increased by 123 percent and 75 percent, respectively. Sportsman’s paid all of its rent in August, 99.78 percent of its rent in July and 100 percent of its rent in June. The retailer’s performance benefited from market share gains, a surge in outdoor activities participation and civil disorder.
3. Sprouts Farmers Market
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The supermarket chain is continuing with plans to open 20 new stores this year, filling in key markets such as California, Texas and Georgia and building out in new areas including the Mid-Atlantic and Florida. Sprouts Farmers market paid all of its rent in August, after paying 99.70 percent of its rent in July and 100 percent of its rent in June. Sprouts' CFO Denise Paulonis said the company was able to expand curbside pickup from just 55 stores to the entire chain, while also increasing e-commerce sales from 4 percent of all sales in the first quarter to 13 percent in April and 12 percent in May.
4. Wells Fargo
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The bank paid 100 percent of rent for its retail branches in August, after paying 99.66 percent of its rent in July and 97.78 percent of its rent in June. That’s in spite of the fact that Wells Fargo & Co. is planning severe job cuts that could ultimately impact up to 20 percent to 25 percent of its workforce, or around 50,000 to 66,000 jobs, according to sources.
5. America’s Best Contacts
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The discount provider of eye examinations, eyeglasses and contact lenses paid all of its rent in August, after paying 99.58 percent of its rent in July and 98.52 percent of its rent in June. With more than 700 stores in 31 states and Washington, D.C., including about 200 added since late 2018, the chain of vision centers was growing quickly before the pandemic began to hit the U.S. in February.
6. Shop Rite
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The supermarket operator with stores in six states—Connecticut, Delaware, Maryland, New Jersey, New York, and Pennsylvania—recently announced plans to open a new location in 2021 in Huntington, New York. The supermarket paid all of its rent in August, after paying 99.39 percent of its rent in July and 99.98 percent of its rent in June.
7. Automobile Club
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Automobile club paid all of its rent in August, after paying 99.01 percent of its rent in July and 97.17 percent of its rent in June. Around 91 percent of auto-related retailers paid their rent in August, according to the Datex report.
8. Pet Supplies Plus
U.S. consumers now spend $49 billion annually on pet food, supplies and treats, according to data technology company SPINS. The privately-held pet supply seller paid all of its rent in August, after paying 76.15 percent of its rent in July and 81.92 percent of its rent in June. The company is also planning to open new locations and offering consumers the option of online ordering and curbside pickup.
9. Taco Bell
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Taco Bell unveiled its latest restaurant design expected to debut in the first three months of 2021, including two drive-thru lanes, pickup shelves, curbside pickup and more technology in the kitchen. The changes are intended to push customers to order their food ahead of time and keep drive-thru lines short. The fast-food chain paid 99.99 percent of its rent in August, 99.92 percent of its rent in July and 99.73 percent of its rent in June. In Taco Bell’s second fiscal quarter, it served an additional 4.8 million cars through drive-thru lanes compared with a year earlier, even as its same-store sales declined 8 percent.
10. Century Theaters
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Several Century Theaters are reopening after closing due to the COVID-19 pandemic. The movie theater chain paid 99.96 percent of its rent in August, after paying 99.96 percent of its rent in July and 99.93 percent of its June. In an attempt to prevent infections, all auditoriums will be disinfected every morning. There will also be reduced capacity and staggered showtimes to allow for social distancing and extra cleaning.