Legislative, Regulatory & Legal

Bids are being accepted on the leases for 425 Payless ShoeSource locations through May 15, according to RCS Real Estate Advisors, which has been retained to handle the disposition.   The stores range in size from 2,000 to 5,000 sq. ft. and are situated in both mall and street environments.   Payless this week filed for Chapter 11 bankruptcy protection, listing liabilities between $1 billion and $10 billion. It will continue to operate its business as usual at its nearly 4,000 other locations. 

Payless ShoeSource filed for Chapter 11 bankruptcy protection amid growing competition from off-price retailers and online.

The retailer, which has some  4,400 locations in more than 30 countries, plans to immediately close nearly 400 stores in the United States and Puerto Rico as it attempts to boost its balance sheet and restructure its debt load.

Despite gains in prescription marketshare and comparable pharmacy sales across its U.S. base, Walgreens Boots Alliance missed analyst expectations for its second quarter. 

Walgreens is still confident in its ability to close the Rite Aid transaction, but will force the issue if it comes to that, Stefano Pessina, executive vice chairman and CEO Walgreens Boots Alliance, told analysts Wednesday morning.  

The  retail community has had a curious relationship with the Ivanka Trump brand over the last year or two. Some prominent brands proudly display her clothing, shoe and accessories lines. Others carry it, but really don’t highlight it too much, and some have decided  to drop it all together.   

This week, the Senate Judiciary Committee considered the nomination of Judge Neil Gorsuch to the United States Supreme Court. Since vacancies on the bench are rare and the political stakes so high, few spectacles in Washington D.C. invite this level of drama. He was confirmed by the committee but when his nomination eventually goes to the floor of the Senate for a vote, the real fun will begin. (See “nuclear option.”) Lost in the hype is what his eventual seat on the court will mean to retail operators.  

The latest move by Walgreens Boots Alliance in its pursuit of the Rite Aid may be a bet that a Trump-appointed FTC chief will finally push the deal through.  

Gander Mountain has taken a step toward keeping the brand in business.    The outdoor retailer, which filed for bankruptcy protection on March 13, has filed a stalking horse bid. A joint venture comprised of Gordon Brothers and Hilco Merchant Resources has proposed to purchase substantially all of the retailer’s assets. This stalking horse bid will act as a baseline, in effort to ward off low offers on the chain’s assets.