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'Companies like Ross and TJX already have enough stores in their fleet that they didn't have to be as aggressive in an auction to get new stores, but it's perfectly reasonable for Burlington to be aggressive to reach their store count desires.' 'Burlington is in aggressive growth mode, these are fantastic locations and they're getting a lot of value for their dollar,' Read said. Read, the executive vice president with Retail Specialists, said it's 'no surprise' Burlington was the top bidder for Bed Bath & Beyond's leases. 'Some of our best stores were created from carved-up Kmart or Sears locations,' he added.

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Many of our most successful and productive stores today were once upon a time Circuit City, Toys R Us, Sports Authority, Linens 'N Things,' said O'Sullivan, rattling off a series of other failed retailers that came before Bed Bath & Beyond. 'We have a very strong real estate team that has a lot of experience dealing with retail bankruptcies. 'We hope in 20, some of the availability that we're seeing from retail bankruptcies will give us the opportunity to open more,' he added.īurlington's decision to buy Bed Bath & Beyond's leases wasn't its first foray into bankruptcy-run lease auctions, the chief executive said on the call. 'We think these bankruptcies are likely to have a significant impact on the availability of attractive new store locations … we're confident that these bankruptcies will strengthen our new store pipeline,' said O'Sullivan.

It aimed to open even more in the coming years.ĭuring a call with analysts, CEO Michael O'Sullivan said the company had its eye on 'retail bankruptcies.' When Burlington reported earnings for the three months that ended April 29, the company noted it planned to open 70 to 80 net new stores in fiscal 2023. But retail bankruptcies can provide a unique opportunity to snatch space they couldn't otherwise access. The lack of available retail space can hinder companies looking to expand. The influx of available stores comes as vacancy rates for shopping centers fell to 5.6% in the first quarter of this year, the lowest level since commercial real estate firm Cushman & Wakefield began tracking in 2007. Retail bankruptcies and off-price expansion It is unclear if that process is underway or what will happen to the additional leases that weren't auctioned off this week. The retailer had said in court filings that another wave of lease auctions could take place. Successful bids went through for only 109 of them. When Bed Bath & Beyond filed for bankruptcy in late April, the retailer had 468 leases to its name, and 153 of them were brought to auction earlier this week, records show. A portion of those proceeds will likely go to unpaid rents at the locations and the rest will go to Bed Bath & Beyond to pay the retailer's many creditors. The leases sold are for stores that range in size from 14,000 square feet all the way to 92,000 square feet.īed Bath & Beyond raked in $24.41 million from the lease auction. Leases for the Buy Buy Baby outposts could be clawed back depending on what happens at an auction for the chain's assets, Bed Bath & Beyond said in a court filing. The leases are for both Bed Bath & Beyond and Buy Buy Baby locations. Those landlords can now find their own tenants and potentially get a higher rent price than they'd be able to within the auction process.

Landlords apart from those companies won 37 of the leases, the next-largest portion after Burlington. Macy's paid $1.2 million for a lease in ritzy Winter Park, Florida, for a potential Bloomingdale's location, and Barnes & Noble secured a lease in Concord, North Carolina, for $129,015. The other winners include grocers, premium furniture stores and discounters. Michael's: Nine leases for $2.55 million.Burlington Coat Factory: 50 leases for a total price of $13.53 million.Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

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