My colleagues at The New York Post have an exclusive story on Macy’s looking for a white knight to buy it, before an activist investor attempts to break it up.
The hedge fund says that the value of Macy’s real estate is worth more than two times the current market cap of the stock. Macy’s stock price is down 60% over the last 18 months.
This is part of the new paradigm of US retail. Retailers large and small are struggling to find a successful model to take on Amazon and other web-based e-tailers that have a far lower operation costs.
The fact that middle class Americans have suffered over the last decade as discretionary income has fallen off the cliff as many had to trade full-time jobs with benefits for two part-time jobs.
As a result shopping malls across the country are struggling to keep storefronts open. The list of bankrupt clothing outlets is growing by the day.
Large mall retailers: Aeropostale, Pacific Sunwear and American Apparel all filed for bankruptcy in 2016.
In 2017, women’s clothiers Claire’s Stores, J. Crew, Nine West and True Religion Apparel along with Wet Seal, Eastern Mountain Sports and Bob’s Stores are all struggling to get their huge debt loads refinanced before huge payments are due later this year.
So as you see from above it’s not just the smaller stores that has mall operators shaking. The large anchor stores at the ends of the malls are also in question. Macy’s has already announced it is closing 60 stores this year, Sears is closing stores across the country as its decade-long struggles begin to mount and it sells of many of its prized products to keep the doors open.