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August 5, 2020

On August 2, Lord & Taylor LLC filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Eastern District of Virginia. The proceedings have been designated as case number 20-33328. The Company’s owner, clothing rental startup Le Tote Inc., also filed Chapter 11. The filings come less than a year after Le Tote bought Lord & Taylor from Hudson’s Bay Company.

On August 3, the Debtors filed a preliminary Disclosure Statement and Chapter 11 Plan. The Plan provides for solicitation of bids for a going concern sale of both the Lord & Taylor and Le Tote (the Company’s owner) businesses, while concurrently conducting store-closing sales. To the extent potential bidders express interest in purchasing one or more of the stores, the Debtors intend to discontinue the store closings at such locations. The Lord & Taylor store-closing process has begun at 19 units. The Disclosure Statement does not yet provide an estimate of recoveries for general unsecured creditors.

Both Le Tote and Lord & Taylor will continue to operate during the Chapter 11 process. To help fund operations, the Company has obtained consent to use cash collateral from its prepetition secured lenders, and to monetize assets. The plan to market Lord & Taylor and its owner, Le Tote, is supported by the prepetition secured lenders.

The Debtors filed the following motions, seeking interim authorization to:

  • use cash collateral (the Debtors did not file a motion seeking to access a DIP Facility);
  • pay prepetition claims of critical vendors, 503(b)(9) claimants, and lien claimants in the ordinary course of business, in an aggregate amount not to exceed $2.2 million.
  • close all 38 Lord & Taylor stores (click here to request the list); GOB sales will start immediately at 19 locations;
  • approve the Disclosure Statement at a hearing scheduled for September 11; and
  • solicit bids as part of an auction process. 

Dunkin is permanently closing 8% of its U.S. locations, which amounts to about 800 restaurants. Dunkin’ described the closures as “real estate portfolio rationalization” and said the affected locations are in “low-volume sales locations” that only represent 2% of its U.S. sales as of 2019. More than half of the closures are in Speedway convenience stores. These locations are set to be closed by the end of this year. Dunkin’ also said approximately 350 locations “may permanently close” outside of the U.S. Click here to request a list of future closures.

On August 2, Tailored Brands (parent of Men’s Wearhouse and Jos. A. Bank) filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. The proceedings have been designated as case number 20-33900. As part of a prearranged Plan of Reorganization, the Company announced it has entered into a Restructuring Support Agreement (RSA) with more than 75% of its senior lenders.

Under the RSA, funded debt is expected to be reduced by at least $630.0 million, which will “enable the Company to continue generating profitable growth and driving value for customers and stakeholders.” Throughout the restructuring process, the Company said it expects that its four retail brands, Men’s Wearhouse, Jos A. Bank, Moores Clothing for Men, and K&G Fashion Superstore, will continue to operate. Management said it plans to move quickly through the Chapter 11 process. Click here to request a list of future closings.

In the ascena retail group bankruptcy case, the Debtors filed a preliminary Disclosure Statement and Plan of Reorganization. The Plan provides for the reorganization of the Debtors as a going concern and the reduction of long-term debt; and ultimately, a restructuring through a debt-for-equity conversion. The Disclosure Statement does not yet indicate a projected recovery for general unsecured creditors. The Reorganized Debtors will retain the right to pursue causes of action (including avoidance/preference actions). A hearing to consider the adequacy of the Disclosure Statement is scheduled for September 3. Click here to request a list of future closings.

Bed Bath & Beyond announced it completed the sale of to 1 800 FLOWERS.COM for $245.0 million. PMall will continue to provide product and personalization services to the Company’s Bed Bath & Beyond and buybuyBABY retail concepts. The Company continues to review its non-core assets for opportunities to further simplify its portfolio.

The Company also announced plans to close its stores on Thanksgiving Day in the U.S. and Canada, including its namesake stores, buybuyBABY, Christmans Tree Shops, Harmon Face Values, and Cost Plus World Market. The Company plans to introduce two-hour BOPIS and contactless curbside pickup services to make the holiday shopping experience as safe and easy as possible. Click here to request a list of future closings.

On July 30, California Pizza Kitchen, Inc. filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. The proceedings have been designated as case number 20-33752. As part of a prearranged Plan of Reorganization, the Company has entered into a Restructuring Support Agreement with a majority of its senior creditors. It anticipates reducing debt by $230.0 million, more than half of the prepetition total, and raising additional funding from existing lenders to improve its balance sheet. The agreement includes a $46.8 million DIP Facility, which management said will allow the Company’s restaurants to continue operating, and enable continued payments to vendors and employees.

CPK operates more than over 200 restaurants in the U.S. and abroad. The COVID-19 pandemic disrupted the chain’s business, which generated 78% of revenue from on-site dining before the crisis. The Company closed 46 of its restaurants and obtained $30.0 million of emergency financing from lenders in April 2020, but management said that revenue was still 40% lower than 2019 levels as of the last week of June.

Neiman Marcus entered into a tentative agreement to settle a dispute related to the 2018 spinoff of the Mytheresa e-commerce business. The agreement, which has the support of the Creditors’ Committee and lenders, has the potential to remove a major hurdle to approval of the Plan of Reorganization. As part of the settlement, the Debtors will contribute $10.0 million to a pool of funds for general unsecured creditors. Additionally, Neiman Marcus Group Inc., the parent company controlled by private equity sponsors Ares Management Corp. and Canada Pension Plan Investment Board, which purchased the Company in 2013, will contribute 140 million shares of preferred stock in Mytheresa to the recovery pool for general unsecured creditors. The value of the shares is still being determined. The settlement is subject to Court approval. The Court also approved the Debtor’s Disclosure Statement, which enables it to solicit creditors’ votes on the Plan of Reorganization. Neiman’s advisers have indicated they intend to start the solicitation process sometime next week. Click here for a list of future closings.

On August 2, 7-Eleven, a wholly owned, indirect subsidiary of Seven & i Holdings Co., Ltd., announced it has agreed to acquire Speedway’s approximately 3,900 stores in 35 states from Marathon Petroleum Corp. for $21.00 billion in cash; the transaction is expected to be completed in 1Q21. The deal also includes a 15-year fuel supply agreement for approximately 7.7 billion gallons per year associated with the Speedway business. Speedway and 7-Eleven have complementary geographic footprints with little overlap. 7-Eleven currently has over 9,800 stores in North America and, with Speedway’s portfolio, will have nearly 14,000 North American locations. Upon completion of the deal, 7-Eleven will have a presence in 47 of the top 50 most populated metro areas in the U.S.

In other news, 7-Eleven will add Laredo Taco Company restaurants to more than 10 of its stores in the Oklahoma City, OK metro area. All units are expected to open by early 2021. 7-Eleven acquired more than 100 independently operated 7-Eleven stores in the greater Oklahoma City metropolitan area earlier this year. The Laredo Taco Company restaurants, along with Stripes convenience stores in South Texas, were part of 7-Eleven’s 1,000-store acquisition from Sunoco in 2018.

Bogopa Enterprises, Inc. was declared the successful bidder for Fairway Group Holdings' Red Hook (Brooklyn, NY) and Douglaston, NY stores at a supplemental auction. The winning bid was $2.4 million. Brooklyn-based Bogopa operates 26 Food Bazaar grocery stores in New York City, Westchester County, Long Island, New Jersey, and Connecticut. 

Topgolf Entertainment will open a new venue in Chattanooga, TN on August 7. This location is the second under the Company’s community-focused, completely open-air concept, following an opening in Augusta, GA in late June. Topgolf Chattanooga features 36 climate-controlled hitting bays with the Company’s Toptracer technology, as well as a full 18-hole mini golf course and backyard-style lawns with fire pits. This will bring Topgolf’s total store base to 62. 

According to reports, an attorney for J.C. Penney commenting on developments in the case, stated that the July 31 deadline for a business plan, which he previously described as important to preventing liquidation, is no longer relevant under the new strategy, which targets a sale that should be completed by this fall. He said, “We have had not one discussion about a liquidation. It’s simply not in the cards.” The current plan involves a sale of the Company in parts, with lenders led by H/2 Capital taking over certain major real estate assets (propco), while there are three potential bids for the operating unit (opco), which would keep the Company in business. He declined to identify the bidders, indicating that the proposals are confidential. The attorney also addressed speculation earlier this week that private-equity firm Sycamore Partners is planning to make a $1.75 billion bid to buy the Company and merge it with Belk, Inc. He said the story is “ill-informed” and, regarding Sycamore’s plans to merge J.C. Penney with Belk, “that is completely untrue.”Click here to request a list of closures.

Wawa plans to build a 1,850 square-foot freestanding drive-thru location in Falls Township, PA. It will be Wawa’s first-ever store solely focused on drive-thru and curbside pickup service. Construction is set to begin later this month, with its opening targeted for December. Additionally, Wawa plans to add a drive-thru feature to a new store currently under construction in Westhampton, NJ.

Cracker Barrel Old Country Store entered into a new Master Lease agreement with Oak Street Real Estate Capital, regarding 65 properties it had previously sold and leased back from US Realty Advisors, Kimco Realty Corp., and Jobel Management Corp. in 2000. Under the terms of that original transaction, the Company entered into a 20-year lease and had the right to repurchase all of the properties at the end of the lease. Cracker Barrel exercised that right in August 2019, and last month assigned to Oak Street the right to acquire 53 properties from US Realty for $175.0 million and 11 properties from Jobel for $30.5 million. Cracker Barrel itself acquired the one remaining property for $3.2 million.

In a separate transaction, Cracker Barrel has agreed to sell and leaseback another 62 properties to Oak Street for $149.7 million, meaning the Master Lease agreement will ultimately cover 126 properties. The transaction is expected to close this month, and the annual rent for the 62 additional properties is estimated to be $10.5 million. Management expects to receive net proceeds of $130.0 million after fees and expenses, which will be used for general corporate purposes and to strengthen the Company’s balance sheet in light of the COVID-19 pandemic.

McDonald’s is planning to permanently close 200 of its nearly 14,000 restaurants in the U.S. More than half of the units set to close are located within Walmart stores and are reporting low sales volume. The Company said that the closures were already expected for future years but that the pandemic accelerated its plans. McDonald’s noted that restaurants with drive-thru windows, which President and CEO Chris Kempczinski said are in about 95% of stores, are recovering better from the effects of COVID-19. Restaurants that operate in malls and urban centers or depend on tourists are struggling more.

Retail Ecommerce Ventures, LLC entered into a $1.9 million stalking horse purchase agreement with Modell’s Sporting Goods to acquire the Modell’s trademarks, domain names, social media assets, customer transaction data, and the “Gotta Go to Mo’s” jingle. Retail Ecommerce Ventures acquired the Dressbarn intellectual property and e-commerce business from Ascena Retail Group in 2019. The deadline for qualifying bids was yesterday. If qualifying offers are received, an auction will be held this Thursday, August 6. The anticipated date for a sale hearing was not announced.

Meijer plans to open a 42,000 square-foot small-format store called Meijer Rivertown Market in Detroit. The $15.6 million project is expected to be completed in late summer 2021. It will be Meijer’s third Detroit location. Click here to request a list of future openings.

In the midst of the COVID-19 pandemic, Walmart announced it is laying off hundreds of corporate employees, even as it boosts the number of frontline workers. The Company had previously eliminated division and regional manager roles. This follows consolidation of the Company’s online operations into one unit under, and shuttering the operations. The layoffs are part of Walmart’s efforts to become a more streamlined omnichannel organization and comp despite strong 1Q sales, with revenue up 8.6% and 10% improvement in comps. Click here to request a list of future openings and closings.

On July 31, Chico’s announced that an immaterial subsidiary, Chico’s FAS Canada, filed for bankruptcy in Ontario, Canada, resulting in the permanent closure of four Chico’s FAS and six White House Black Market locations. The bankruptcy proceedings will take place through the District Court of Ontario, Canada. Related to this subsidiary’s bankruptcy, the Company expects to record a non-material charge to FY20 operations on a net basis. 

Costco is partnering with Instacart to launch same-day delivery in Canada, following a successful two-month pilot in select Ontario stores. Same-day delivery is now available from 76 Costco stores in Canada via the Instacart marketplace. The companies have also introduced Costco’s new Canadian member-only website featuring member benefits and access to same-day delivery via Instacart. Click here to request a list of future openings.

In the 24 Hour Fitness bankruptcy case, the Court granted final authorization for the Debtors to access up to $250.0 million of a new money DIP Facility and to use cash collateral. An attorney for the Debtors stated that funds available under the DIP Facility are sufficient for the Company to continue operating until 2021, even if all its clubs nationwide are closed. He also said that terms of the DIP Facility provide that the Debtors will pay: (i) full rent for clubs that were open in July, and (ii) 30% of rent for facilities that were intended to be open, but which have been closed by state or local government orders.

The attorney said that landlords have the ability to opt out of this treatment and pursue payment of rent in full; however, the Debtors will retain the right to claim defenses, including the landlord’s failure to provide access to the premises under the doctrine of force majeure (allowing postponement or suspension of one or both parties’ performance of obligations under circumstances beyond the parties’ control, which make performance of the agreement impractical or impossible). Courts have historically interpreted force majeure clauses narrowly and will only excuse performance if the specific event is enumerated in the force majeure provision. Finally, the attorney noted that landlords can negotiate with Debtors for an alternative treatment of their rent claims.Click here to request a list of closings.

Earning Reports


Amazon’s second quarter continued to benefit from its position as an essential retailer and its robust omnichannel infrastructure, with sales rising 40% to $88.91 billion. By channel, online sales rose 47.8%, while physical store sales fell nearly 13%, likely due to pressure from competitors who had begun to reopen stores. Amazon Web Services (AWS) sales remained strong, up 29% and comprising 12.2% of total sales. Sales mix improved to higher-margin discretionary categories, as pantry stocking and panic buying subsided. Despite this mix shift, Amazon’s gross margin slid 200 bps, as shipping costs jumped 68% and made up 25% of cost of goods sold. Operating margin of 6.6% was up 170 bps from last year. COVID-19 related costs reached $4.00 billion; Amazon expects pandemic-related costs of $2.00 billion in 3Q. The Company forecasts 3Q sales in the range of $87.00 billion – $93.00 billion, representing an increase of 24% – 33%, while operating income is projected to be in the range of $2.00 billion – $5.00 billion compared to $3.20 billion in 3Q19.


Denny’s Corporation reported results for 2Q ended June 24, and provided an update on the impact of the COVID-19 pandemic on its operations. As of July 22, 97% of the Company’s 1,536 domestic restaurants had opened, and 47 locations remained temporarily closed. The Company began reopening dining rooms in early April and reached a peak of 1,430 restaurants with dining rooms reopened as of July 1. However, a significant increase in COVID-19 cases in recent weeks caused several states to reinstate bans on dine-in service, most notably California. As a result, the number of restaurants with open dining rooms has fallen to 1,035 as of July 22. 

Denny’s consolidated 2Q sales declined 73.6% to $40.2 million, as domestic comparable restaurant sales fell 56.9% and management agreed to a one-time $3.0 million royalty abatement to support franchisees. By month, a 76% comp decline in April was followed by 65% and 41% declines in May and June, respectively. The aforementioned closure of dining rooms at several hundred locations impeded further recovery in July, as preliminary comps for the month were down 39%.


Publix’s 2Q sales jumped 21.8% to $11.40 billion, driven by comp growth of 19.9%. The Company estimates 2Q sales increased $1.50 billion, or 16.1%, due primarily to the impact of the coronavirus pandemic. Net earnings were $1.40 billion, compared to $661.1 million in 2019, impacted by net unrealized gains on equity securities. For the year-to-date period, sales rose 18.9% to $22.60 billion, and comps increased 17.1%.

During the first half of the year, 16 supermarkets were opened (four replacements), 82 supermarkets were remodeled and four supermarkets were closed.

Effective August 1, Publix’s stock price increased $4.25 to $54.35 per share. Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board. Click here to request a list of future openings.


On July 28, L Brands provided 2Q guidance; the Company anticipates 2Q sales to drop 20%, driven by a 40% slide at Victoria’s Secret and 10% increase at Bath & Body Works. Direct channel sales are up significantly at both banners due to store closures during 1Q. As of July 24, the Company had liquidity of over $2.50 billion, with no amounts drawn on its credit facility. The Company reports 2Q earnings on August 19. Click here to request a list of future openings and closings.

L Brands also announced a restructuring plan to deliver $400.0 million in annualized savings; this includes actions to decentralize and streamline shared corporate functions as well as a profit improvement plan at Victoria’s Secret. Of those savings, $175.0 million is anticipated to be achieved in 2020; the Company will record a $75.0 million impairment charge in 2Q. 

The cost savings will result from the following:

  • Cutting home office headcount by 15% (or 850 employees);
  • Inventory management, including working with suppliers to improve merchandise margins at Victoria’s Secret; spring and fall product receipts are down 45% and 50%, respectively, from last year;
  • Reducing Victoria’s Secret’s store selling costs;
  • Executing previously announced plans to close 250 Victoria’s Secret stores in 2020 and negotiating with landlords for rent relief;
  • Reducing operating losses in its U.K. and China businesses.

Dine Brands Globalreported results for its 2Q ended June 30. Revenue declined 51.9% to $109.7 million during a 2Q that was fully impacted by the COVID-19 pandemic. Applebee’s and IHOP’s 2Q comps were down 49.4% and 59.1%, respectively, with an overall trend of slow recovery throughout the quarter until a relative plateau in recent weeks. The Company began reopening dining rooms in late April, and as of June 30, 1,523 domestic Applebee’s restaurants had reopened dining rooms, 70 were operating with only off-premise service, and 46 were temporarily closed. At the same time, 1,485 domestic IHOP restaurants had reopened dining rooms, 76 were operating with only off-premise service, and 134 were temporarily closed. In total, 95% of the Company’s U.S. store network is open for dine-in or off-premise service.

As expected, Sally Beauty’s 3Q sales declined 27.7% to $705.3 million, primarily due to COVID-19 closings, 27 permanent closures, and foreign exchange headwinds; comps were down 26.6%. With salons closed globally, e-commerce sales increased 278% to $137.0 million, representing 19.4% of 3Q20 sales. As the quarter progressed, the top line improved, and June comps were positive across all segments. Due to inventory clearance actions, gross margin eroded 390 bps to 45.6%. Despite operating expense reductions, SG&A and adjusted EBITDA margins deleveraged 520 bps and 510 bps, respectively.


Starbucks Corporation reported results for its 3Q ended June 28 and provided an update on the status of its store network. As of yesterday, 97% of all Company-operated stores are open, including 96% in the U.S., 97% in Canada, and 99% in China. Approximately 30% of Company-operated U.S. stores have reopened seating areas with limited capacity as of quarter-end, compared to 70% of stores with full seating in China. Only 87% of global licensed stores are open, with most of the remaining temporary closures representing airport, college, and university locations in the U.S. and Canada. Consolidated revenues dropped 38% to $4.22 billion, largely due to a 40% decrease in global comps. Comps in the Americas specifically declined 41%, consisting of a 53% decrease in transactions, partially offset by a 27% increase in average ticket. The Company posted an operating loss of $703.9 million, driven mainly by the deleveraging effect of the steep sales decline, as well as incremental costs related to the Company’s U.S. store portfolio optimization initiative. Starbucks provided updated guidance for 12% and 17% comp declines in the Americas for the 4Q and full year, respectively, compared to previous guidance of 10% to 20% declines. Consolidated revenues are expected to decrease 10% to 15% in the 4Q. 


Yum! Brands reported results for its 2Q ended June 30. Worldwide system sales declined 12%, excluding foreign exchange effects, as a 15% drop in comparable restaurant sales was only partially offset by net 3% unit growth year-over-year, which includes 276 Habit Burger Grill restaurants acquired in the first quarter. By banner, KFC comps were down 21%, Pizza Hut comps fell 9%, and Taco Bell comps declined 8%. At the peak of the COVID-19 impact in early April, about 11,000 restaurants were temporarily closed, representing approximately 21% of the Company’s global store network. As of July 30, 95% of restaurants are operating in full or limited capacity; less than 2,500 restaurants remain temporarily closed, with about 70% of closed restaurants located in malls, airports, and other transportation centers. 


Sprouts reported 2Q sales growth of 16%, driven by a 9.1% increase in comps as a result of increased COVID-19 related demand. Top-line growth as well as strategic promotional activity resulted in a 450 bps increase in gross margin to 37.3%. The Company experienced higher operating costs during the period from greater employee compensation as well as costs associated with a 500% increase in e-commerce from last year. Overall, Sprouts reported adjusted EBITDA grew 56.3% to $127.4 million. The Company opened six new stores during the period, ending with 350 locations in 23 states, and plans to open approximately 20 new stores in fiscal 2020. Click here to request a list of future openings.


Floor & Décor’s 2Q sales dropped 11.1% to $462.4 million, and comps plummeted 20.8%. Gross margin improved 60 bps to 42.5%. Adjusted EBITDA fell 31.6% to $45.6 million. The Company opened two new stores during the quarter, ending with 125 locations. All stores are fully operational as of June. Management indicated that comp trends accelerated through the back half of 2Q, leading to June comp growth of 7.7%; 3Q-to-date comps are up 16%. The Company plans to open 13 new stores this year, up from its previous estimate for 11 new openings. Looking to 2021 and beyond, the Company intends to grow its new store base by 20% annually for the next several years. 


The Cheesecake Factory reported results for 2Q ended June 30 and provided an update on the ongoing reopening of its restaurant network. 2Q sales dropped 49.4% to $295.9 million, primarily due to a 56.9% comparable restaurant sales decline. Comps fell 66% in April, 42% in June, and were still down 32% in July through July 26. The Company reported a net loss of $56.5 million, partly driven by $11.7 million in COVID-19-related charges for healthcare benefits and costs for furloughed workers. As of July 30, 71% of the Company’s restaurants had reopened dining rooms at limited capacity, including 146 Cheesecake Factory locations. Another 36 Cheesecake Factory restaurants have reopened outdoor dining areas only. 22 Cheesecake Factory restaurants and 16 locations under other banners are still operating on an off-premise only model, and one Cheesecake Factory is temporarily closed. 


Reitmans 1Q21 sales fell 43.5% to C$104.7 million, due to six weeks of COVID-19-related store closures and 18 locations permanently shuttered since last year. During the lockdown, the Company relied on its e-commerce channel to generate sales. Currently, 259 Reitmans, 106 Penningtons, 80 RW&CO and 77 Addition Elle stores are open, but 54 Thyme Maternity stores were permanently closed on July 18. The Addition Elle locations are expected to close permanently on August 15. Management took an $18.3 million charge for inventory reserves due to the Thyme Maternity and Addition Elle closures, and the buildup of inventory during the shutdown. Excluding the charge, gross margin contracted to 47.1%, compared to 55% last year. To reduce inventory and generate sales, higher markdowns and greater promotional activity will be undertaken during the current quarter. Overall, the 1Q21 EBITDA loss was $20.9 million, compared to EBITDA of $12.2 million the prior year. The Company’s cash burn for 1Q21 was C$34.9 million. As of May 2, Reitmans had no debt and cash balances of C$42.7 million, which has likely further declined. 

As previously reported, Reitmans filed for creditor protection on May 19, pursuant to the Companies’ Creditors Arrangement Act (CCAA). Subsequently, the Québec Superior Court issued an Amended and Restated Initial Order, which granted the Company an extension until October 16 to reorganize its operations. Reitmans is working with Ernst & Young, the Monitor appointed under the CCAA process, and expects to provide updates on its progress. Additionally, the Company was delisted from the Toronto Stock Exchange on July 29 and is working to transition to the TSX Venture Exchange. Based on its deteriorating liquidity position the Company needs additional financing, but has yet to procure a committed bank facility. Reitmans is currently in negotiations with a Canadian financial institution to obtain interim financing.


Weis reported 2Q sales growth of 23.7% to $1.10 billion, as COVID-19-related stay-at-home orders boosted demand for groceries; comps were up 24.1%. E-commerce sales increased 243% during the same period.Operating income was $56.0 million, compared to $26.3 million last year.

Chairman and CEO Jonathan Weiscommented, “The coronavirus pandemic has altered most aspects of daily life in our seven-state market area which was impacted by full and partial shutdowns initially, and cautious reopenings in June. This has resulted in customers taking an increased number of meals at home, which shifted food service demand to food retail.”


Due to the closure of all theaters throughout the quarter, Cinemark’s 2Q revenue plummeted 99.1% to a record low of $9.0 million. Admissions revenue of $37,000 and concession revenues of $57,000 included sales from the five test theaters reopened in June that were showing old classics at a reduced price. Other revenue included the amortization of deferred NCM screen advertising advances.

As a result, EBITDA fell to negative $117.6 million, compared to positive $244.7 million in the prior year period. During the quarter, the Company also recorded a $19.5 million restructuring charge due to a permanent reduction in headcount and the closure of certain underperforming theaters, which contributed towards a net loss of $170.4 million.

As of 2Q end, the Company had $571.8 million in cash, including proceeds from the issuance of $250.0 million in Senior Secured Notes during the quarter and after fully drawing down $98.8 million under its revolving credit facility on March 25. As a result of its cash position and actions taken to reduce fixed costs and nonessential capital expenditures, management noted it has adequate liquidity to maintain operations well into 2021. As of June 30, the Company operated 534 theaters with 5,977 screens, and expects to add four new theaters and 34 screens to its circuit during the remainder of 2020, and 18 new theaters and 189 screens subsequent to 2020. Looking forward, the Company now expects to reopen its theaters beginning August 21, after ongoing delays due to COVID uncertainty and studios pushing back major releases. The Company's D2 credit rating is currently under review for a potential downgrade.


Shake Shack reported results for its second quarter ended June 24. Total sales decreased 39.9% to $91.8 million, primarily reflecting a 39.5% comp decline and an approximately $3.2 million headwind from temporary closures related to nationwide protests in late May and early June. On a monthly basis, comps improved from a 65% drop in April to a 42% drop in June, but further recovery may be slower as July comps were still down 39% through July 22. At quarter end, approximately 60% of domestic Company-operated restaurants had reopened dining rooms at limited capacities, and that percentage rose to 95% as of July 22. Additionally, about 80% of licensed Shake Shack restaurants have reopened, including all locations in Hong Kong, China, and Japan, and half the locations in the U.K. The Company previously announced on July 7 that it has restarted new restaurant development, with four new restaurants opened in June (two in California, one each in North Carolina and Missouri). Management expects to open another six to 11 restaurants in the second half of fiscal 2020, though the timing of openings could shift based on local government restrictions or changes due to COVID-19.