NEW YORK – November 10, 2021 – RCS Real Estate Advisors has successfully guided Solstice Sunglasses, America’s second-largest seller of sunglasses and long-term RCS client, through bankruptcy. Solstice filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York in February.
RCS assisted Solstice on all aspects of Real Estate restructuring by selecting stores to retain, and renegotiating leases, effectively reducing rents by 2/3 across the portfolio.
Covid-19 significantly affected Solstice in 2020. Sales at the chain of luxury sunglasses boutiques fell more than 50% in 2020 compared with 2019, due to mandatory store closures in key markets and stay at home orders. RCS helped Solstice eliminate pre-petition debt and outstanding rent obligations providing them with much needed financial relief to combat the effects of Covid-19.
Solstice, with a growing e-commerce site and a portfolio of stores that includes a mix of mall locations, street retail and outlets, comes out of the global epidemic as a more efficient and profitable operation. RCS performed deep market analyses to identify the strongest, most profitable locations for Solstice to preserve while exiting the lower performing stores.
“Solstice has emerged from bankruptcy as a leaner, stronger chain, preserving consumer choice for millions of buyers of sunglasses,” said Moe Puri, a vice president at RCS Real Estate Advisors. “RCS is proud to have created a turnaround plan that reduces Solstice’s operating and occupancy costs, while giving the retailer the optionality and flexibility it needs to survive and thrive.”
“We believe in Solstice’s future because we now have turnaround plan to remain one of America’s leading purveyors of sunglasses,” said Solstice CEO Mikey Rosenberg. “There’s room in the market for a retailer that makes it convenient and more affordable to buy luxury eyewear. RCS Retail Advisors helped Solstice restructure our real estate portfolio, renegotiated our leases and shepherded us through our reorganization.”
About Solstice Sunglasses
Solstice Sunglasses is a luxury sunglasses boutique carrying the finest assortment of designer, contemporary and sport sunglasses for women, men and children. Solstice Sunglasses is committed to quality, in our service and selection. We hand pick our assortments to ensure refined offerings, including Italian handmade luxury sunglasses from iconic brands including Dior, Dior Homme, Fendi, Givenchy, Gucci, Jimmy Choo and Tom Ford. The contemporary collection boasts of Boss, Carrera, Kate Spade, Marc Jacobs and Ray-Ban, plus, for your performance needs, Maui Jim, Oakley and Smith Optics. Shop Solstice Sunglasses at one of our stores across the U.S. or from the convenience of your home at solsticesunglasses.com. Solstice Sunglasses offers free shipping on all online purchases, a replacement guarantee, complimentary repairs, fittings and cleanings, plus hassle-free returns in an elegant, luxurious environment.
About RCS Real Estate Advisors
RCS Real Estate Advisors is a leading national retail real estate advisory firm that provides innovative, tenant-centric solutions for complex real estate challenges. We fight tenaciously and think strategically to keep clients out of harm’s way. RCS maximizes returns and protects clients from entering into bad agreements, with a deal-structure mindset rooted in a forward-looking, risk-averse approach. We negotiate leases to reduce operating and occupancy costs, while helping clients balance assets, earnings, expenses and debt. RCS excels at identifying and exploiting investment and expansion opportunities because we see the world through retailers’ eyes thanks to our extensive industry experience. Since 1981, retailers have trusted RCS to strike fair, favorable leases, preserve profitable locations, and monetize real estate.
Rachel Tate, Shea Communications, [email protected], 7605194596