Lauren Leach: The Retail Apocalypse and Its Knock-on Effects on Society – MoneyMakers
Lauren Leach was featured in MoneyMakers‘ article titled “The Retail Apocalypse and Its Knock-on Effects on Society.”
However, according to Lauren Leach, a member of Conway MacKenzie’s Real Estate Vertical, not all retailers are going out of business due to the shift toward online sales. Some have simply fallen victim to bad business practices and acquired too much debt.
Responsible for the overall workout strategy and client relationship of managed portfolios, and specializing in distressed and troubled real-estate properties, Leach knows a thing or two about the retail apocalypse.
Leach says that many more stores are on the verge of closure announcements with some major names already on the watch list, including JC Penney, 99 Cents Only Stores, Bebe Stores Inc., and a bunch of others in danger of filing for bankruptcy in 2019.
There’s no doubt that a large portion of mall-based retailers are in trouble as a result of the explosion of online sales. But Leach says that online shopping is not the sole culprit for the demise of all retailers. While many are quick to point the finger at Amazon & Co., others can blame their woes on being saddled with an immense amount of debt.
Leach explains that many store closures have a domino effect on real estate and its landlords. Many sophisticated retailers negotiate to include co-tenancy clauses in its leases with landlords. A co-tenancy clause is a requirement that either certain named key tenants (often anchor tenants or department stores) or a percentage of the gross leasable area remains occupied.