November 22, 2023
In the RITE AID CORPORATION, DIP case, A&G Real Estate Partners, which is marketing 92 leased and 21 fee owned properties, announced deadlines for the fee owned sales process. See our Case Summary for details.
After the conclusion of any auction, motions will be filed seeking court approval of the sales, and closings will take place after court approval (both likely in January 2024). The Debtors also notified the Court that they plan to close an additional 22 stores. To date, the Debtors have notified the Court of 205 store closures.
The recorded Rite Aid Webinar - Bankruptcy Update is now available for viewing. Please access here.
PUBLIX signed a lease for its sixth Kentucky store, a 55,000 square-foot location in Boone, KY, which will operate adjacent to a Publix Liquors. Projected to open in 2025, the store brings Publix into the greater Cincinnati metro area. Publix has previously announced plans to open three stores in Louisville and two in Lexington, KY, the first of which will open in January.
COBORN'S has sold all 14 of its Holiday Stationstores franchise locations in central Minnesota back to Holiday Stationstores. Coborn's will continue to operate its Little Dukes convenience stores, which operate adjacent to Coborn's and Cash Wise Foods Stores. Coborn's acquired the Holiday stores in 2006, and then Holiday was acquired by Alimentation Couche-Tard in 2017. Holiday operates more than 500 locations in 10 states. Coborn's joins other grocery chains, like Kroger and Schnuck Markets, which have sold off convenience store locations, while grocers that maintain a sizeable c-store business include Hy-Vee and Giant Eagle.
VALLARTA SUPERMARKETS opened its newest store in Carson, CA, simultaneously debuting La Fruteria, a new in-store offering where shoppers can create fresh fruit bowls. The Company plans to bring La Fruteria to additional locations, but did not specify a time frame or store count. Vallarta operates 55 grocery stores across California.
RACETRAC will open the company’s first store in mid-December. Located in Indianapolis, the debut store will serve the needs of the area's small- to mid-size fleet drivers and construction vehicles with an expanded diesel offering. A second Indiana RaceTrac location is expected to open late spring.
MACY'S is opening small-scale stores in Ramsey and Mount Laurel, NJ, with the Ramsey store occupying 25,000 square feet and the Mount Laurel store occupying 30,200 square feet. Both stores will occupy former Bed Bath & Beyond stores. Opening dates have yet to be announced. Macy's announced the small-format concept in October and said it plans to open up to 30 such stores by 2025. There are currently 12 in operation. The small format stores occupy about one-fifth of the size of a traditional Macy's and offer Macy's products along with other popular brands. There are currently 24 Macy's locations in New Jersey and 508 locations nationwide.
POTBELLY announced the completion of a deal that will expand the company’s presence in the greater Seattle-Tacoma region, increasing the total number of shops in the area to 22. This deal is part of the company’s long-term growth strategy, which includes franchise deals underway across the U.S.
WALMART's third-quarter global revenue rose to $160.8 billion, up 5.2% from last year, the Company said in a Thursday earnings announcement. E-commerce for Walmart’s U.S. segment rose 24%, led by pickup and delivery. E-commerce rose 16% for Sam’s Club and was up 15% globally.
According to the announcement, the Company continues to make investments in its supply chain and fulfillment infrastructure. The Company expects to have seven stores with automated market fulfillment centers operational by the end of November and has invested in a substantial store renovation program, which is resonating with customers. During its earning call, malmanagement said US food industry may be heading into a period of deflation after three years of punish price hikes. CEO McMillon said, “We may see dry grocery and consumables start to deflate in the coming weeks and months.”
BUC-EE’S and MERCEDES-BENZ will place charging stations at the retailer's travel center locations throughout Texas, Florida, Alabama, and Georgia by the end of 2023, with further expansion planned for 2024. Special features of the new chargers include charging rates of up to 400kW, indicators to display the charging status of each stall, and charging lounges.
CRATE & BARREL opened a 23,000 square-foot flagship store in the Flatiron District of Manhattan, NY, unveiling its first-ever "immersive design" concept. The store features top-selling items across every home category, as well as a selection of artisanal home goods exclusive to the location. It also offers monogramming services, design and trade services, and a designated kid and baby section.
TEMPUR SEALY announced it has certified substantial compliance with the Federal Trade Commission's second request for documents and information pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The certification is in connection with the proposed acquisition by Tempur Sealy of Mattress Firm, as previously announced on May 9. Pending satisfaction of closing conditions and receipt of all regulatory approvals, Tempur Sealy expects to close the transaction in mid to late 2024.
Natura & Co. announced an agreement to sell THE BODY SHOP to private equity group Aurelius for £207 million (US$257 million), with an earn-out of £90 million. The price and earn-out will be payable in up to five years after closing, which is expected to occur by December 31. The deal is subject to customary regulatory approvals.
BUYBUY BABY opened 11 stores on November 18, with locations stretching from Massachusetts to Maryland. The openings come less than four months after BuyBuy Baby was purchased out of bankruptcy by baby goods manufacturer Dream on Me and shuttered all its stores. The chain also launched its new website in October. The Company said it intends to grow its store base to more than 100 stores over the next 3+ years, with the aim to open new locations as targeted sites become available. Stores average 20,000 - 30,000 square feet.
PERFUMANIA and FRAGRANCE OUTLET have hired New York-based RCS Real Estate Advisors intending to establish the 220-store chain in high-traffic malls and other retail centers. Part of the plan for raising the profile of both the Perfumania and Fragrance Outlet brands will be stocking the stores with new authentic designer and proprietary fragrances. The two-brand chain currently operates in 38 states, offering an assortment of 2,000 SKUs that include hard-to-find and limited-production fragrances and accessories.
Comvest Credit Partners is acting as administrative agent and is the sole lender on a $115 million senior secured credit facility for Pollo Tropical, a subsidiary of FIESTA RESTAURANT GROUP. The financing supported the take-private acquisition of Fiesta by Authentic Restaurant Brands, a portfolio company of Garnett Station Partners. The financing also provides committed capital to support the ongoing operations of the business. Pollo Tropical operates more than 130 locations throughout Florida and franchises over 20 units internationally in Puerto Rico, Central America, South America, and the Bahamas.
General Interest
October U.S. Retail Sales... Retail sales fell 0.1% in October, but that was less than the expected (Bloomberg) 0.3% drop. October was also the first monthly decline since March. However, September’s sales growth was adjusted up 20 bps to a 0.9% gain. Declining auto and gasoline prices drove the drop in October sales; excluding auto and gasoline sales were up 0.1%. Health and personal care stores saw the largest gain for the month, up 1.1%, while furniture retail sales remained a laggard and had the largest decline, down 2%. Furniture stores also saw the largest YOY drop, down 11.8%. Sales at department, building materials, sporting goods, hobby, musical instruments and book and general merchandise stores were also negative for the month and YOY period. On the other hand, consumers continued to spend more at restaurants and bars, online and at grocery stores. However, grocery, food & beverage stores saw only modest YOY growth, up 0.9% and 1%, respectively. Click here to view the full report.
Quarterly Earnings
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