Financial/Banking

The National Retail Federation (NRF) is publicly welcoming a ruling striking down the 2012 settlement of a class action lawsuit over Visa and MasterCard’s credit card swipe fees.   The ruling by the U.S. Court of Appeals for the Second Circuit in New York overturns a December 2013 approval of the settlement by U.S. District Court Judge John Gleeson.  

Dick’s Sporting Goods was the victor on Thursday at the bankruptcy auction for former rival Sports Authority Holdings.    Dick’s bid $15 million for the brand name and other intellectual property, beating British-based Sports Direct International PLC’s $13 million bid, according to the Wall Street Journal.      Dick’s also had the winning bid at the auction for 31 Sports Authority store leases, for an additional $8 million, the report said.  

New Century Commons, a shopping center in Delray Beach, Florida, has been purchased by Menin Development for $33 million, according to a report in the Sun Sentinel.

Seller of the 84,551-sq.-ft. center was Linton 510 LLC, which faced uncertainty over the future of one of its anchors, Sports Authority, which filed for bankruptcy in March. Questions about cash flow going forward complicated the closing of the sale, though a Menin spokesman told the South Florida newspaper that several retailers have inquired about the Sports Authority space.

The Enclave Shops at Coral Ridge outside of Fort Lauderdale is complete and its Fresh Market anchor has opened its doors. Its developer, Stiles, partnered with local businessman Phil Smith to build the surrounding residential community, The Enclave at Coral Ridge Country Club.   The Fresh Market has been a draw to other prospective retail tenants at the 27,300-sq.-ft. center, according to Stiles VP of realty Mike Carpenter.    

The demise of the American mall is greatly exaggerated, held Sandler O’Neill analyst Alexander Goldfarb during a discussion of Brexit on CNBC.   “Dead mall stories are great, but when it comes time to drive earnings cash flow in stocks, that’s where those big powerhouse malls show through,” Goldfarb said. “For the global investor looking for safety and security, [it’s] U.S. real estate.”  

The recent vote by the United Kingdom to leave the European Union will have the biggest retail impact on companies that have high U.K. exposure, including U.S. off-price giant TJX Cos., MarketWatch reported.    Swedish fast-fashion giant H&M is also among the retailers to be most impacted. The United Kingdom is the company’s third largest market, behind Germany and the United States. 

Retail store expansion could get a boost from lower rents in the next 12 months as real estate investment trusts react to volatility in global financial markets, according to Pacific Investment Management Co.   In a report titled, “U.S. Real Estate: A Storm Is Brewing,” PIMCO portfolio managers John Murray and Anthony Clarke forecasted a drop of as much as 5% in commercial real estate prices due to a confluence of factors including public market volatility, tightened regulations, and uncertain foreign capital flows.

So far, bidding on the 464 stores of bankrupt sporting goods retailer Sports Authority has been limited. According to Reuters, Dick’s Sporting Goods has placed a bid on 17 Sports Authority stores, with other bidders only attempting to purchase single locations.