PE firms sit on lots of cash but won’t invest it in their stripped-bare and failing restaurant chains.
A zombie well before the pandemic, the UK company had racked up huge debts to finance rapid growth in a sector that had started shrinking some time ago.
It’s a pandemic, so there are problems with the data.
Winners in this crisis: Ecommerce – for retailers that don’t sell men’s office & formal wear – and for sure, lawyers.
“People do not buy a new outfit to stay at home.” Sales at stores that have reopened languish while ecommerce is booming. McKinsey: up to a third of global fashion retailers will not survive the crisis.
Commercial Mortgage-Backed Securities backed by hotel and mall properties get hit the hardest. Mall-REIT CBL failed to make bond interest payment yesterday.
Ecommerce Spikes to Record. Mall Stores Got Hung Out to Dry. Walmart’s Online Sales, Still Woefully Behind, Shot Up 74%
The disaster came in two phases: first, the brick-and-mortar meltdown, then Covid-19.
Investors bet on this outcome for years. Covid-19 just sped it up by a few months. Department Stores Are Toast.
Years of brick-and-mortar meltdown get compressed into a few months. But ecommerce is booming.