Companies Declaring Bankruptcy in DFW (Dallas: to buy, shops, company)

[Soccernerd]

Originally Posted by Wittgenstein's Ghost

I think American Airlines has a 50% chance of bankruptcy in this. They are the least-equipped major airline to handle this crisis.

I would say United is probably in worse shape.

I don’t think any US airline will declare bankruptcy unless there’s an even more severe wave of COVID in the fall or winter.

[Mr. Clutch]

Originally Posted by Soccernerd

I would say United is probably in worse shape.

I don’t think any US airline will declare bankruptcy unless there’s an even more severe wave of COVID in the fall or winter.

American has twice the debt of United and Delta combined. They are the least profitable of the big 4 airlines and are definitely at more risk than the others.

With that said, I still have a hard time thinking any of them will actually go bankrupt at the end of the day. Traffic is already starting to pick up a bit and it should continue provided no major coronavirus setbacks.

[Run To The Hills]

It looks like 4 or 5 of the current fortune 500 companies will be dropping off the list tor next year. The picture looks a little bleak. Fortunately the country is opening back up.

[Soccernerd]

JCP just released which stores will be closing in their efforts to turn things around and return to profitability. They will be closing the Skillman and Lewisville locations.

The big news really is that most of the closed locations are located in rural areas or malls that have long been in decline.

https://www.cnbc.com/2020/06/04/jc-p...full-list.html

[bmlx]

Originally Posted by Soccernerd

JCP just released which stores will be closing in their efforts to turn things around and return to profitability. They will be closing the Skillman and Lewisville locations.

The big news really is that most of the closed locations are located in rural areas or malls that have long been in decline.

https://www.cnbc.com/2020/06/04/jc-p...full-list.html

Although this pertains more to Fort Worth than to Dallas, in terms of declining malls, it shocks me that Ridgmar Mall in Fort Worth was not on that list. That mall has drastically declined in recent years, and is practically dead. JCP is the last full-line anchor there, and I had fully expected them to close soon.

[Soccernerd]

I don’t know anything about Ridgmar nor have I ever been in that area of Fort Worth, but I would think it should do better since it’s so close to a military base.

I guess people can always shop at the commissary.

[NTXPerson]

I visited Rigdemar mall last year. It reminded me a lot of Valley View before it closed down. It’s definitely run down. There’s hardly any shopping over there, so I wouldn’t be surprised if the people at the military base are frequenting it often and therefore, keeping it open. The next closest mall is at Hulen and 20. It’s not too far behind either in quality. Fort Worth really lacks in shopping compared to Dallas.

[citidata18]

I've been lurking in this thread reading the comments, and would like to respond to the discussion about JCP.

I have no expertise in retail, but if I had to assume, I think they're going prioritize closing stores based on the following besides profitability:

1. Whether they outright the property outright (so they can leverage its equity for liquidity).

2. The extent of retail saturation in the surrounding area. It's easier for them to justify staying open if they don't have to worry about Belk, Nordstrom's, Kohl's Macy's *AND* Dillard's all siphoning off their business.

3. Leasing terms. Depending on the contract negotiated with different shopping mall owners, if they're signed onto a long-term agreement, they may have to keep the store open even if it's not profitable.

4. The age of the store, and whether the cost to maintain and/or renovate the location exceeds the revenue it brings in.

BTW, my understanding is that these 154 stores will just be the first wave. In their bankruptcy filing, the plan is to close 242 stores in total.

[Soccernerd]

Originally Posted by citidata18

I've been lurking in this thread reading the comments, and would like to respond to the discussion about JCP.

I have no expertise in retail, but if I had to assume, I think they're going prioritize closing stores based on the following besides profitability:

1. Whether they outright the property outright (so they can leverage its equity for liquidity).

2. The extent of retail saturation in the surrounding area. It's easier for them to justify staying open if they don't have to worry about Belk, Nordstrom's, Kohl's Macy's *AND* Dillard's all siphoning off their business.

3. Leasing terms. Depending on the contract negotiated with different shopping mall owners, if they're signed onto a long-term agreement, they may have to keep the store open even if it's not profitable.

4. The age of the store, and whether the cost to maintain and/or renovate the location exceeds the revenue it brings in.

BTW, my understanding is that these 154 stores will just be the first wave. In their bankruptcy filing, the plan is to close 242 stores in total.

You bring up some important points on JCP and the retail scene in general.

The only experience I have with working retail is working in the shoe department at Famous-Barr which was a St. Louis area department store chain bought out by Macy’s.

JCP leases most of its store locations which has added difficulty in managing their finances as property owners have demanded payment. I also read that Dillard’s actually owns most of its pads, so it’s in a better position.

The retail situation won’t change significantly until there’s a vaccine or viral therapy to bring customers back in again. There’s also the fact that brick and mortar retail was struggling for years though.

[citidata18]

Originally Posted by Soccernerd

You bring up some important points on JCP and the retail scene in general.

The only experience I have with working retail is working in the shoe department at Famous-Barr which was a St. Louis area department store chain bought out by Macy’s.

JCP leases most of its store locations which has added difficulty in managing their finances as property owners have demanded payment. I also read that Dillard’s actually owns most of its pads, so it’s in a better position.

The retail situation won’t change significantly until there’s a vaccine or viral therapy to bring customers back in again. There’s also the fact that brick and mortar retail was struggling for years though.

The bolded is interesting.

I know JCP had been aggressively building a lot of stand-alone locations in the past 2 decades, which I believe they own those outright. So I figured they would have a lot more stand-alone stores than that.

Dillard's IMO is similar to Nordstrom's. It never really did expand all that aggressive like JCP and it kept true to its brand, as far as being a destination for shoppers who seek an upscale shoppers on a budget.