President and CEO
RCS Real Estate Advisors
Last year at this time I commented on how the trends I was seeing indicated that
2016 could end up being difficult for retailers, just like 2008 was. It turns out
2016 was indeed a lot like 2008. There were numerous large bankruptcies and many
retailers struggled with misaligned occupancy costs as a result of lower sales.
Well, it seems like we have seen this movie before. 2017 is looking to be very much
like 2009 with more of the same that we saw this year.
Most mature retailers
we speak to are still looking to not only reduce their costs, but to also reduce
their footprint. In general they are feeling like this country is “over-stored” and
the Internet is continuing to have a big impact on store sales.
In 2016, we
saved our clients $259,786,230. Isn’t it time you called us to see what we can save
RCS congratulates client PacSun on their emergence from Chapter 11. RCS is pleased
to have operated as Real Estate Advisor to PacSun and to have been a key part of
their successful efforts to restructure. PacSun was acquired by affiliates of Golden
Gate Capital and is now better positioned for the future.
Josh Olshansky, Managing Director at Golden Gate Capital, said: “PacSun offers
consumers the most compelling and desirable mix of brands celebrating the California
lifestyle. Now, with a strengthened balance sheet, reduced long-term debt and
reduced annual occupancy costs, the Company is well-positioned to build a stronger
future and achieve long-term success. Gary H. Schoenfeld, PacSun President and Chief
Executive Officer, stated: “We are excited to be emerging from a quick and efficient
Chapter 11 process as a stronger and more competitive company.”
To find out more about how RCS Real Estate Advisors can help you unlock more of the value within
your retail real estate, contact Mitchel Friedman, Senior Vice President and Director of Business
Development and Corporate Strategy at 212.300.5373 or [email protected]