Page 25 - ARUBA TODAY

BUSINESS Tuesday 4 February 2020
A25

Mall owners among group bidding $81 million for Forever 21

By MICHELLE CHAPMAN Mark Hunter, managing di- fashion chains like H&M
AP Business Writer rector leading CBRE's mall and Zara, rode a wave of
A consortium of buyers, in- management and leasing popularity among young
cluding mall owners Simon business in the Americas, shoppers that took off in
Property Group and Brook- says that Simon and others the mid-1990s. It had the
field Property Partners, is are trying to keep occu- market heft to win over cus-
bidding $81 million for For- pancy high at their malls. tomers from traditional stal-
ever 21, the ubiquitous mall They don't want to trigger a warts like Abercrombie &
staple that filed for bank- clause that lets other retail- Fitch and American Eagle.
ruptcy protection in Sep- ers at the shopping center Their popularity grew dur-
tember. ask for a lower rent or even- ing the Great Recession,
Simon and Brookfield are tually get out of a lease. when shoppers sought
Forever 21's biggest land- Still, Simon and others re- fashion bargains. But For-
lords. The other bidder is main "strategic" regarding ever 21 went on an aggres-
Authentic Brands Group, which retailer to buy. sive expansion of stores just
which has acquired the li- Forever 21, based in Los as shoppers were moving
censing rights to other trou- Angeles, is a privately held online. It has since closed
bled retailers like Barneys company founded by the hundreds of stores globally.
New York. In 2016, Simon Chang family. It joined a As of the bankruptcy fil-
and mall owner General rapidly growing list of retail- ing, it operated about 800
Growth Properties, which ers that have fallen victim stores worldwide, including
is now owned by Brook- to changing shopping be- more than 500 stores in the
field Property Partners, haviors and preferences U.S. The company said at
teamed up to save strug- among teens who have the time of the filing that
gling teen apparel retailer increasingly turned away it would still operate its e-
Aeropostale, which was in from malls in favor of online commerce business, which
bankruptcy. Simon's Chair- brands, or thrift stores. accounts for 16% of total In a September 30, 2019 file photo, people walk in front of a
man and CEO David Simon Forever 21's bankruptcy sales. Forever 21 clothing store in New York.
told investors during an marked a dramatic fall Other interested parties Associated Press
earnings call last year that for the retailer. The com- have until Feb. 7 to provide
Simon was looking at other pany was founded in 1984 a higher offer. If a higher breakup fee of $4.6 million. will face a judge on Feb.
potential bankrupt retailers. and, along with other fast- bid is accepted, there's a The approval for the sale 11.q

FTC sues to block Harry's sale

to Schick owner Edgewell

By ALEXANDRA OLSON independent competi- brands and products at a
AP Business Writer tor would remove a criti- great value," Raider and
NEW YORK (AP) — Fed- cal disruptive rival that has Katz-Mayfield said in a joint
eral antitrust regulators say driven down prices and statement.
a proposed merger that spurred innovation in an in- Edgewell CEO Rod Little
would combine old-school dustry that was previously said his company would re-
shaving company Schick dominated by two main spond to the lawsuit "in due
with upstart Harry's would suppliers, one of whom is course."
end up costing consumers the acquirer," the FTC said Raider and Katz-Mayfield, In this June 15, 2018, file photo, the Winston razor and Harry's
some skin. .New York-based Harry's, who are poised to become face lotion are on display at the headquarters of Harry's Inc., in
The Federal Trade Com- which has expanded to co-presidents of Edgewell's New York.
mission on Monday sued sell its products at Target U.S. operations under the Associated Press
to block Edgewell Per- and Walmart, had hoped deal, have said Harry's
sonal Care Co.'s $1.37 bil- to capitalize on Edgewell's would remain a distinct
lion acquisition of Harry's, large distribution chan- brand after the merger,
which was supposed to nels and Schick's blade including sticking with its
be finalized this year. The technology. Edgewell, competitive pricing.
FTC argues that bringing which has struggled to turn But the acquisition had
two major shaving brands around Schick's slumping raised questions among
together would hurt com- sales, had hoped to lever- Wall Street analysts about
petition.Edgewell's Schick age Harry's direct-to-con- how two competing shav-
is the No. 2 razor maker in sumer marketing base and ing brands would exist
the U.S., behind Gillette. digital savvy. under the same parent
Both brands were forced to Harry's co-founders Jeff company without harming
slash prices and overhaul Raider and Andy Katz- each other.
their marketing strategies Mayfield said Monday they Shares of Edgewell rose
in recent years response to were disappointed by the 13.4% Monday. The com-
the rise of Harry's and rival lawsuit and would evalu- pany, based in Shelton,
Dollar Shave Club, which ate their next steps. Connecticut, also owns the
both started as direct-to- "We believe strongly that Banana Boat, Hawaiian
consumer digital brands. the combined company Tropic, Playtex and Care-
"The loss of Harry's as an will deliver exceptional free brands. q