When Brooks Brothers filed for bankruptcy last month, court filings showed it owed as much as $1 billion to thousands of creditors, including $10 million to one of its biggest landlords: Simon Property Group. Now the nation’s premier mall operator is also its owner, the Washington Post reported. In recent weeks, Indiana-based Simon snapped up bankrupt retailers Brooks Brothers and Lucky Brand, and bid on another, J.C. Penney. It also is reportedly in talks with Amazon to turn space once filled by Sears and other department stores into e-commerce warehouses. Analysts say the succession of deals gives Simon a roster of iconic brands for rock-bottom prices and steady rent. Others see an act of desperation that will only delay the inevitable demise of dozens of flailing malls across the country. The company’s foray from landlord to owner shows just how deeply the coronavirus crisis has reshaped the retail industry. Like many of its peers, Simon temporarily shut all 175 of its U.S. malls and outlets in March, and was reported to have furloughed about 30 percent of its workforce. It delayed more than $1 billion in redevelopments. Major tenants like the Gap stopped paying rent, while others began pulling out of leases. Apparel chain Abercrombie & Fitch, meanwhile, is suing Simon, alleging that it “wrongfully extracted rent payments” during the pandemic. In all, Simon collected about 51 percent of retailers’ rent payments in April and May, and about 70 percent in June and July, executives said on an earnings call this month. Now the company is investing millions to prop up some failing retailers, in hopes of keeping occupancy rates up and rent payments coming in.
