New York & Co. parent RTW Retailwinds filed for chapter 11 bankruptcy protection Monday, with plans to shutter all of its stores and potentially sell its intellectual property and e-commerce arm. The company, which operates 387 retail stores in 32 states under the New York & Co., Fashion to Figure and Happy x Nature brands, suffered from store closures and supply chain issues brought on by the pandemic.
Retailers are looking to provide quality, contactless shopping experiences as consumers return to stores amid the pandemic. Multi-brand retailer Showfields developed an app that allows shoppers to avoid touching things while browsing, MySizeID has seen use of its contactless body measurement technology increase by 800% amid the pandemic and Brookfield Properties is teaming with Fit:Match to offer digital sizing tools at three shopping centers.
The Philippines Securities and Exchange Commission has granted permission for an initial public offering of a REIT with Ayala Land as the sponsor. The offering would be the first of its kind for the country, and shares would list on the Philippine Stock Exchange on Aug. 7.
Simon Property Group and Authentic Brands Group won a bid to supply Brooks Brothers with a zero-interest $80 million loan that will carry the retailer through bankruptcy. Brooks Brothers' branding and trademarks are required as collateral for the loan.
Many companies are rethinking their space needs after having realized that remote work is a viable strategy. Office rent collection has held up relatively well during the pandemic, but Victor Calanog of Moody's Analytics predicts that the office vacancy rate could reach 19.4% by December.
Commercial construction costs fell for the first time since 2010 in the second quarter, a Turner Construction index shows. Turner's Attilio Rivetti noted that competition among trade contractors has intensified, and he said that the third quarter could "more clearly define the fluctuation of escalation of cost in the construction industry."
In this interview, Boston Properties CEO Owen Thomas explains how the company assembled a task force to aid the creation of a health security strategic plan. Looking forward, expect the office market to have an increased focus on spacing and healthy building policies related to light and air, he said.
The Small Business Reorganization Act, which took effect earlier this year, could help smaller companies use Chapter 11 bankruptcy protection. Federal stimulus measures and other factors appear to have limited bankruptcy filings so far, but Amy Quackenboss of the American Bankruptcy Institute notes, "I do think there is going to be a surge."
US companies raised a quarterly record of almost $190 billion from the end of March to the end of June, according to Dealogic, as they rushed to insulate balance sheets from the coronavirus pandemic through initial public offerings and stock issuance. The activity prompted a surge in bank fees.
Pension funds are having difficulty valuing the real estate assets in their portfolios as pricing has become opaque amid the pandemic. The percentage of public-pension portfolios invested in real estate has grown from 3.8% in 2007 to 6.1% in the first quarter of this year.