What is David Simon's Plan?
Over the past few years, Simon Property Group has been scooping up failing legacy retailers via bankruptcy. Aeropostale, Nautica, and F21 are a couple examples, and now the company is positioning itself to acquire additional companies such as Lucky Brand and Brooks Brothers:
https://www.bloomberg.com/news/articles/2020-07-1…
What do you all think David Simon's game plan is here? There are obviously short-term co-tenancy implications to keeping these retailers alive/that GLA occupied; however, there has to be a more macro-level strategy that I'm just not seeing.
Going after anchors who own their RE like JCP makes sense, as those are land plays, but the inline tenants aren't as straight forward.
Is the idea that SPG believes they can run these businesses/brands more profitably than the brands can (did) themselves? If so, is there a limit to how many of these brands SPG can realistically acquire/operate?
Is the idea that these retailers over-expanded and can be profitable with fewer locations, which would be concentrated almost exclusively within SPG properties?
Or, is this just a thinly veiled attempt to prop up the mall business model?
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