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BUSINESS Tuesday 11 February 2020
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Now for sale at the mall ...

the mall; Simon buys Taubman

By MICHELLE CHAPMAN manages or leases 26 shop- cording to CoStar Group, a
and ANNE D'INNOCENZIO ping centers in the U.S. and real estate research firm.
AP Business Writers Asia, including The Mall at Vacancy rates at malls
As mall-based retailers Short Hills in New Jersey, are hoovering around 4%
struggle to compete with and Waterside Shops in on average , says CoStar,
the onslaught from online Naples, Florida. Simon owns though struggling malls are
shopping, the companies or has a stake in 204 prop- closer to 7% vacant.
that own and manage the erties in the U.S., including Last week Macy's, a cor- This Feb. 16, 2010 file photo shows the headquarters of the Simon
malls are finding their own premium outlets as of last nerstone in many malls, an- Property Group in downtown Indianapolis. Associated Press
business models severely year. nounced that it is closing
challenged. "By joining together, we 125 of its least productive Traditional malls are adding Shares of Taubman Cen-
For the second time in as will enhance the ability of stores and cutting 2,000 more entertainment and ters Inc., based in Bloom-
many weeks, there is a ma- (Taubman) to invest in inno- corporate jobs. The store other non-retail options like field Hills, Michigan, soared
jor agreement involving vative retail environments closures represent about restaurants and gyms to 53% Monday. Shares of
mall operators. that create exciting shop- one fifth of all its locations create new energy at their Simon Property, based in
The Simon Property Group ping and entertainment and are in poor-perform- properties. They're also try- Indianapolis, rose less than
will buy mall operator Taub- experiences for consumers, ing malls. And consortium ing to avoid darkened ar- 1%.q
man Realty in a deal val- immersive opportunities for of buyers, including mall eas inside their properties,
ued at around $3.6 billion. retailers and substantial owners Simon and Brook- which can exacerbate
Simon Property Group Inc. new job prospects for local field Property Partners, bid their problems and trigger
is the nation's largest mall communities," said David $81 million last week for For- lease clauses that allow
operator. It said Monday Simon, Simon's chairman, ever 21, the ubiquitous mall tenants to renegotiate.
that its operating partner- CEO and president in a staple that filed for bank- The acquisition of a ma-
ship, Simon Property Group, statement. ruptcy protection in Sep- jority stake in Taubman is
LP, will buy all of Taubman Malls have struggled with tember. expected to close by the
stock for $52.50 per share. retail bankruptcies and Several years ago, Simon middle of the year. It still
The Taubman family will sell store closings after a vast and the company that be- needs approval from two-
about one-third of its own- shift in the way Americans came Brookfield Property thirds of the outstanding
ership stake at the trans- shop. Partners, another big mall Taubman voting stock and
action price and remain Since 2015, only nine malls operator, teamed up to a majority of outstanding
a 20% partner in Taubman have been built, a dramat- save struggling teen ap- Taubman voting stock not
Realty Group LP. ic fall from their peak con- parel retailer Aeropostale, held by the Taubman fam-
T aubman Realty owns, struction in 1973 of 43, ac- which was in bankruptcy. ily.

Schick owner

retreats from $1.37B

buyout of Harry’s

SHELTON, Conn. (AP) — The Harry's co-CEOs, Jeff Raid-
company that owns Schick er and Andy Katz-Mayfield,
has terminated its attempt said they "continue to be
to buy the upstart shaving perplexed by the FTC's pro-
company Harry's for $1.37 cess and disregard of the
billion, just days after the facts." And they said that In this June 15, 2018, file photo, the Winston razor and Harry's
U.S. sued to block the ac- they're "disappointed by face lotion are on display at the headquarters of Harry's Inc., in
New York.
quisition. the decision by Edgewell's Associated Press
Edgewell Personal Care board not to see this pro-
Co. said Monday that it will cess to its conclusion."
move forward as a stand- The statement made no
alone company. It also mention of Harry's intention
said that Harry's Inc. is now to pursue litigation.
suing Edgewell, a case that "We're growing, profitable,
it says has no merit. well capitalized and ex-
The Federal Trade Com- cited about the opportuni-
mission cited antitrust is- ties ahead for our business,"
sues in trying to derail the Raider and Katz-Mayfield
deal last week. Schick is said.
the No. 2 razor company Harry's, based in New
in the U.S. behind Gillette. York, had hoped to capi-
Both brands have slashed talize on Edgewell's large
prices and overhauled distribution channels and
their sales operations in re- Schick's blade technology.
cent years in response to Edgewell believed that it
the rise of Harry's and rival would be able to leverage
Dollar Shave Club, which Harry's direct-to-consumer
both started as direct-to- marketing base and digital
consumer digital brands. savvy. q