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Century 21 stores have not paid any portion of their rent since the end of March 2020, according to the Datex tenant track report. Department stores were already in trouble before the pandemic hit, and now the coronavirus outbreak may finish some off. Century 21 temporarily laid off more than 150 people from its two Long Island stores in March. In June, those layoffs became permanent. In filings with the New York State Department of Labor, the company cited "unforeseeable business circumstances prompted by COVID-19" as the reason for the layoffs.
Department stores will be one of the worst affected sectors of retail as a result of this crisis, notes Neil Saunders, managing director at research firm GlobalData Retail.
After paying 100 percent of its rent at the end of March 2020, tween apparel chain Justice failed to pay any portion of its rent since. Ascena Retail Group Inc., the parent company of Justice and several other women’s fashion brands, is preparing to file for Chapter 11 bankruptcy and shutter at least 1,200 stores, according to a report by Bloomberg. The bankruptcy would allow Ascena Retail Group to sell or close certain chains, including Justice, according to the outlet.
Women's clothing chain Lane Bryant, another retailer owned by Ascena Retail Group, is also struggling to pay its rent. The retailer paid 95.96 percent of its rent at the end of March, but has failed to pay any of its rent in May and June.
J.C. Penney filed for Chapter 11 bankruptcy protection in May, after years of sales declines and two months of disruption from the coronavirus pandemic. The retailer made 100 percent of its rent payments at the end of March, 19.89 percent of its rent payments at the end of May, and none of its rent payments at the end of June. J.C. Penney plans to reduce its store count to about 604, down from the 846 it currently operates across the U.S, according to a company filing. It will also close two of its distribution centers.
The accessories and jewelry retailer paid 2.6 percent of its rent at the end of June 2020, after paying none of its rent at the end of May. The chain paid 95.89 percent of its rent at the end of March. Claire’s Boutiques announced that a majority of its store-based associates have been placed on temporary furlough, to be recalled when stores re-open, and approximately 250 corporate office employees have also been placed on temporary furlough. CEO Ryan Vero and board members also took a 30 percent pay cut.
The firearms retailer made 100 percent of its rent payments since the end of March. The company reported that same-store sales in the first quarter of 2020 rose by 28.6 percent compared to the year-ago period, and net sales went up by 41.8 percent, due to “a surge in demand for firearms, ammunition and to a lesser extent, other essential products, including water filtration, food preparation and dehydrated food,” according to Sportsman’s first quarter report.
The supermarket chain has made all of its rent payments for May and June, after paying 99.93 percent of its rent at the end of March. Sprouts Farmers’ first quarter 2020 results benefited from a spike in demand as Americans stockpiled on essential items amid the coronavirus outbreak. The company also partnered with Instacart to offer same-day delivery to customers, with the home delivery business now available in most of the company’s stores.
Arts and crafts retailer Hobby Lobby sells supplies for numerous hobbies, ranging from picture framing and jewelry making to wearable art. The retailer made all of its rent payments at the end of June, after paying 99.51 percent of its rent at the end of May and 99.69 percent at the end of March. The store currently employs over 37,500 people at more than 850 locations in 46 states.
The discount supermarket chain made all of its rent payments at the end of June, after paying 98.21 percent of its rent at the end of May and 98.59 percent of its rent at the end of March. Aldi earned the title of value leader in the Market Force Information Grocery Benchmark Study, which surveys thousands of U.S. shoppers about their grocery buying preferences. The company plans to offer curbside grocery pick-up to about 600 of its nearly 2,000 stores by the end of July for customers who would rather do their shopping online, reports the Orlando Sentinel.
America’s Best Contacts offers discounted eye exams, eyeglasses and contact lenses. 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 spread in the United States. The retailer made all of its rent payments at the end of June, after paying 93.36 percent of its rent at the end of May and 99.42 percent of its rent at the end of March.
