Tuesday, December 30, 2008

Retailers to go bankrupt, malls to close?

From the APs Anne D'Innocenzio:

NEW YORK — The fallout from the horrific holiday season for retailers has begun, with the operator of an online toy seller filing for bankruptcy protection and more stores are expected to do the same — meaning more empty storefronts and fewer brands on store shelves.

A rash of store closings, which some experts predict will be the most in 35 years, is likely to come across areas from electronics to apparel, shrinking the industry and leading to fewer niche players and suppliers.

The most dramatic pullback in consumer spending in decades could transform the retail landscape, as thousands of stores and whole malls close down. And analysts expect prolonged woes in the industry as the dramatic changes in shopping behavior could linger for another two or three years amid worries about the deteriorating economy and rising layoffs.

"You are going to see a substantial retrenchment in the retail industry," said Rick Chesley, partner in the global bankruptcy and restructuring group at international law firm Paul Hastings. "The downturn has been catastrophic."

My understanding is that the Cheshire mall has a five year window in which to move forward (break ground, obtain a certificate of occupancy... I'm not sure.)

Does anyone know the if that's true? And if so, what's the measurement date(s)?

Tim White


Anonymous said...

The text change is done. Anyone can now come forward with a similar plan in the IC-Zone at anytime. Market forces may dictate the current proposal end up in the dust bin but their concept does not expire.

If the developer (WS) gets approvals for their actual plan they have 5 years to start the project. If their approval is about to expire they can seek an extension which would likely be granted since the text change is in place.

Tim S

tim white said...

So for all intents and purposes, there's no deadline?

Anonymous said...

let 2009 playout--if it weren't for the Xmas holidays, bad news would be streaming from big business; now all the stores need to figure out is how much of the projected $45 billion returns will actually come back...then report their final numbers to the public. WAIT!!!