The Next “Big Short” Trade Is Back: Malls Are On The Cusp Implosion … Again
by Tyler Durden
ZeroHedge.com
Sun, 03/03/2019
Over the last 48 hours, several big names in the American mall industry announced they would be slashing store counts to the tune of over 300 stores.
Gap said during its earnings call that it is going to shutter 230 locations over the next two years, just hours after JCPenney said that it would close 18 of its department stores. This news came after L Brands said they were going to close 53 Victoria’s Secret stores in North America this year according to Bloomberg. The icing on the cake was when “disruptor” Tesla recently announced all of its sales would be moving online, which is a nice way to say that almost all of its retail locations – many of which are located in malls – were going to close, leaving its “visionary” retail employees at their local unemployment lines.
These closures follow a number of high profile bankruptcies in the “bricks and mortar” space: Payless Inc. just went bankrupt for the second time in two years, bankrupt sears was minutes away from liquidation, while perennial mall tenant Brookstone filed for chapter last August, slashing the size of their operations – and once American mall staples like Gymboree, RadioShack, Bon-Ton Shoes and Wet Seal all filed for bankruptcy over the last half decade. Payless is going to be abandoning its 2500 stores, while Things Remembered will also be closing most of its 400 stores.
Overall, since 2016, 35 major retail chains, and countless smaller ones, have filed for Chapter 11
The Rest…HERE
