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National Real Estate Investor
UPDATED: COVID-19 Bankruptcies That Could Hurt the CRE Industry
WMRE Staff Nov 01, 2020

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CBL & Associates Properties
Photo: CBL Properties
PREIT
Photo: PREIT
Friendly’s
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Ruby Tuesday
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Ruby Tuesday

Date: Oct. 7, 2020

Locations: 421

Assets: $100 million - $500 million

Liabilities: $100 million - $500 million

Notes: The company has permanently closed 185 of its restaurants. It plans to restructure its debt and reemerge from bankruptcy with a streamlined portfolio. 

Sizzler
FREDERIC J. BROWN/AFP/Getty Images

Sizzler USA

Date: Sept. 23, 2020

Locations: 104

Assets: $1 million - $10 million

Liabilities: $1 million - $10 million

Notes: The company owns and operates 14 of its restaurants. The rest are franchises. It plans to keep its locations open and will try and renegotiate its leases.

NY Sports Clubs
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Town Sports International

Date: Sept. 14, 2020

Locations: Roughly 200

Assets: $500 million - $1 billion

Liabilities: $500 million - $1 billion

Notes: The gym operator is not planning on closing any of its locations. “Town Sports International is not going out of business," the company said in a press release announcing its bankruptcy. "Restructuring is the best way to properly respond to the Covid-19 pandemic, with the long-term goal to emerge as a thriving powerhouse ... as an even stronger company.” 

Maison Kayser
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Maison Kayser

Date: Sept. 10, 2020

Locations: 100 locations in 22 countries

Assets: $10 million - $50 million

Liabilities: $50 million - $100 million.

Notes: As part of its Chapter 11 restructuring filing, the company announced it was selling all of its assets to Aurify, the same company that acquired the U.S. operations of Le Pain Quotidien earlier in the year. 

Regus Corp.
Jeremy Moeller/Getty Images

International Workplace Group

Date: July - September 2020

Locations: Approximately 500 worldwide

Assets: N/A

Liabilities: N/A

Notes: Through the course of the third quarter, Regus Corp. place at least 97 different entities into bankruptcy protection. 

Century 21
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Century 21

Date: Sept. 10, 2020

Locations: 2,800

Assets: $100 million - $500 million

Liabilities: $100 million - $500 million

Notes: The iconic New York City discount department store chain is closing all 13 of its stores and liquidating its assets. 

Stein Mart
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Stein Mart

Date: August 12, 2020

Locations: 281

Assets: $500 million-$1 billion

Liabilities: $500 million-$1 billion

Notes: As of late October, the company had closed all of its stores as part of its liquidation process. It is still trying to sell its intellectual property. 

Tailored Brands
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Tailored Brands

Date: August 2, 2020

Locations: 1,450

Assets: $1 billion-$10 billion

Liabilities: $1 billion-$10 billion

Notes: Plans to eliminate 20 percent of corporate jobs and close up to 500 stores while cutting its debt by $630 million.

Lord & Taylor
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Lord & Taylor

Date: August 2, 2020

Locations: 38

Assets: $100 million-$500 million

Liabilities: $100 million-$500 million

Notes: The company closed 24 of its 38 locations. The list of stores closing is avalaible here. In October, Bloomberg reported that Investment firm Saadia Group LLC won a bankruptcy auction for the company's assets with a cash bid of $12 million.

California Pizza Kitchen
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California Pizza Kitchen

Date: July 30, 2020

Locations: 200

Assets: $100 million-$500 million

Liabilities: $500 million=$1 billion

Notes: The company secured temporay financing to ensure continuing operations. It has not announced store closing plans. In late October, it received court approval to exit bankruptcy. It eliminated more than $220 million of existing funded debt and will emerge with total debt of $177 million. 

Ascena Retail Group
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Ascena Group

Date: July 23, 2020

Locations: 2,800

Assets: $2,700,000,000

Liabilities: $2,549,000,000

Notes: The company plans to permanently close up to 1,600 stores. It will reduce its debt by roughly $1 billion as part of its restructuring. It also recently agreed to sell its Justice brand for $35 million.

The Paper Store
Photo: The Paper Store

The Paper Store

Date: July 15, 2020

Locations: 86

Assets: $10 million-$50 million

Liabilities: $50 million-$100 million

Notes: The company is used its restructuring to keep all of its stores open and re-hire workers that had been furloughed during the pandemic. It emerged from bankruptcy in early September.

NY & Co.
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NY & Co.

Date: July 13, 2020

Locations: 387

Assets: $412,000,000

Liabilities: $396,000,000

Notes: The company hired Great American Group LLC to help it conduct liquidation sales as it closes all of its physical locations. It is trying to sell its e-commerce business. Saadia Group, a New York investment company, acquired the remaining NY & Co. assets and intellectual property and is continuing the brand as an online retailer. 

Muji
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Muji

Date: July 13, 2020

Locations: 18

Assets: $50-$100M

Liabilities: $50-$100M

Notes: The company plans to shut "a small number of its stores" and intends to emerge with a renewed focus on online sales.

Sur La Table
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Sur La Table

Date: July 10, 2020

Locations: 130

Assets: $316,000,000

Liabilities: $297,000,000

Notes: The company planned to close 56 stores as part of its restructuring. It also laid off 20 percent of its corporate staff. In August, a joint venture between Marquee Brands and CSC Generation agreed to buy the company out of bankruptcy for $88.9 million. The sale was approved in October.

David'sTea
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David's Tea

Date: July 9, 2020

Locations: 220

Assets: N/A

Liabilities: N/A

Notes:  The company shut 166 locations in Canada and 42 in the U.S. to shift focus to online sales and wholesale distribution in North America. Canadian entrepreneur Doug Putnam took over 45 of those locations and is launching a new chain called T.Kettle.

 

Brooks Brothers
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Brooks Brothers

Date: July 8, 2020

Locations: 424

Assets: $500,000,000

Liabilities: $500,000,000

Notes: Simon Property Group and Authentic Brand Group reached an agreement to buy the firm for $325 million in early August. As part of the plan, the buyers committed to continue operating at least 125 retail locations. 

Lucky Brand
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Lucky Brand

Date: July 6, 2020

Locations: 200

Assets: $100M-$500M

Liabilities: $100M-$500M

Notes: Simon Property Group and Authentic Brands Group reached an agreement to buy the company for $140.1 million in mid-August, according to CNBC. They will become the core licensee and operating partner for Lucky, "overseeing all sourcing, product design and development, running all of the retailer’s stores in North America, and its e-commerce business."

Fig & Olive
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Fig & Olive

Date: July 3, 2020

Locations: 10

Notes: The company is seeking to get out of four of its leases while paying for 25 percent of its rent obligations.

NPC International
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NPC International

Date: July 1, 2020

Locations: 1,600

Assets: $1 billion-$10 billion

Liabilities: $1 billion-$10 billion

Notes: On August 18, NPC reached a deal with YUM! Brands to close roughly one-fourth of its Pizza Hut locations, according to CNN. NPC is also a major franchisee for Wendy's. It has not announced any plans for that part of its portfolio. 

CEC Entertainment
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CEC Entertainment (Chuck E. Cheese's)

Date: June 24, 2020

Locations: 720

Assets: $1,743,518,039

Liabilities: $1,998,548,744

Notes: In late October, CEC gained approval on its reorganization plan and has reopened many of its locations that were shut down during the early stages of the pandemic. 

GNC
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GNC

Date: June 24, 2020

Locations: 5,800

Assets: $1,650,000,000

Liabilities: $1,650,000,000

Notes: Harbin Pharmaceutical Group Holding Co. Ltd. agreed to a stalking horse bid worth $760 million, plus the assumption of certain liabilities to establish a minimum purchase price for GNC's assets. A bankruptcy court judge has ruled that offer to be satisfactory and the plan was approved in mid-October. 

24 Hour Fitness
Joe Raedle/Getty Images

24 Hour Fitness

Date: June 15, 2020

Locations: 400   

Assets: N/A

Liabilities: N/A

Notes: The company lined up a $250-million bankruptcy loan, according to Bloomberg and in October announced a restructuring support agreement.  

PQ New York
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PQ New York (Le Pain Quotidien)

Date: May 27, 2020

Locations: 98   

Assets: N/A

Liabilities: N/A

Notes: Aurify Brands paid $3 million for the right to be the Belgium-based company’s U.S. master franchisee and is now operating the company.

Tuesday Morning
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Tuesday Morning

Date: May 27, 2020

Locations: 700

Assets: $370,520,000

Liabilities: $199,210,000

Notes: The retailer planned to close about one-third of its stores and is attempting to renegotiate many of it leases as part of its restructuring process, according to Spectrum 13 News. It explored selling its assets, but has now decided to seek approval for a plan to reorganize as a standalone entity. 

Advantage Rent A Car
Smith Collection/Gado/Archive Photos/Getty Images

Advantage Rent A Car

Date: May 26, 2020

Locations: N/A

Assets: $100M-$500M

Liabilities: $500M to $1B

Notes: Rideshare firm Lyft has launched a rental car business, SIXT Rent-A-Car, which has taken over 10 of Advantage Rent A Car's locations, according to the Wall Street Journal.  

Hertz
Cindy Ord/Getty Images

Hertz

Date: May 22, 2020

Locations: N/A

Assets: $25,842,000,000

Liabilities: $24,335,000,000

Notes: Hertz is working to dispose of at least 182,521 leased cars by December 31, 2020. In late October, a bankruptcy judge approved a $1.65 billion loan to help the company keep operating as it restructures. 

J.C. Penney
Drew Angerer/Getty Images

J.C. Penney

Date: May 15, 2020

Locations: 800

Assets: $7,989,000,000

Liabilities: $7,160,000,000

Notes: J.C. Penney is poised to emerge from bankruptcy after working out an agreement with  into an asset purchase agreement with Brookfield Asset Management, Simon Property Group and a majority of the company’s debtor in possession and first lien lenders.

Stage Stores
LM Photos/Shutterstock

Stage Stores

Date: May 10, 2020

Locations: 700+

Assets: $1,713,713,000

Liabilities: $1,010,210,000

Notes: The company sought a sale, but failed to find a buyer. So it is now proceeding with a liquidation, reports Homeworld Business.

Aldo
John Keeble/Getty Images

ALDO Group

Date: May 7, 2020

Locations: 3,000   

Assets: N/A

Liabilities: N/A

Notes: The company is planning to close about half of its stores as part of its restructuring, according to Western Investor.

Neiman Marcus
Noam Galai/Getty Images

Neiman Marcus

Date: May 7, 2020

Locations: 43

Assets: $7,545,903,000

Liabilities: $6,786,722,000

Notes: The company closed five stores as it restructured, according to Footwear News. The company then emerged from bankruptcy protection in late September.

J. Hilburn
Photo: J. Hilburn

J. Hilburn

Date: May 4, 2020

Locations: 4

Assets: Less than $10M

Liabilities: More than $10M

Notes: The company exited bankruptcy protection in June under a new ownership, The Apparel Group, according to The Dallas Morning News.

Gold's Gym
Bruce Bennett/Getty Images

Gold's Gym

Date: May 4, 2020

Locations: 7,300

Assets: Up to $100M

Liabilities: Up to $100M

Notes: German firm RSG Group GmbH bought Gold's Gym out of bankruptcy in July. 

J. Crew
Jamie Squire/Getty Images

J. Crew

Date: May 4, 2020

Locations: 500

Assets: $1,599,300,000

Liabilities: $2,949,700,000

Notes: In early August, the company's creditors accused the retailer of intentionally undervaluing the company’s business, according to a Reuters report. Nevertheless, by early September the company was able to emerge from bankruptcy protection. 

CMX Cinemas
Aaron Davidson/Getty Images

CMX Cinemas

Date: April 25, 2020

Locations: 41

Assets: $100M-$500M

Liabilities: $100M-$500M

Notes: The company has pushed for rental concessions amid uncertainty as to when a broad reopening of movie theaters will take place. 

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