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 for you?
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]