- Private Equity Firms Scramble to Shore Up Coronavirus-Hit Holdings “Among the buyout firms that are notably exposed is TPG, whose portfolio includes circus producer Cirque du Soleil Entertainment Group and fitness-center owner Life Time Inc. as well as talent-agency Creative Artists Agency LLC. The virus has also taken a toll on health care companies including hospital-staffing firm Envision Healthcare Corp., which KKR & Co. acquired in a $5.5 billion buyout in 2018.” (Wall Street Journal, subscription required)
- Big Business Pledged Gentler Capitalism. It’s Not Happening in a Pandemic “Take, for example, Marriott International, the world’s largest hotel chain, which last year earned $1.2 billion. It has begun furloughing most of its American workers, jeopardizing their access to health care, even as the company paid out more than $160 million in quarterly dividends and pursued a raise for its chief executive, Arne M. Sorenson.” (The New York Times)
- U.S. Shopping Mall Owners Face Financial Reckoning “Some of America’s biggest mall owners are facing a financial reckoning as retailers from Urban Outfitters to Calvin Klein stop paying rent in the coronavirus shutdown. Capital markets are signalling that some retail landlords are heading for debt restructurings as their properties remain closed for weeks while they grapple with multibillion-dollar liabilities.” (The Irish Times)
- Amazon to Hire 75,000 More Workers as Demand Rises Due to Coronavirus “Amazon is hiring an additional 75,000 workers at its facilities, on top of the 100,000 new positions it created last month, the company said Monday. In March, the company said it would hire additional warehouse and delivery workers across the country amid a surge in online shopping during the coronavirus outbreak. Since then, Amazon said it has hired more than 100,000 new employees and, as a result, is staffing up even more to help fulfill orders.” (CNBC)
- The Coronavirus Economic Reopening Will Be Fragile, Partial and Slow “The re-emergence over the coming weeks and months will be fitful, fragile and partial—and a bit dystopian, with frequent temperature checks, increased monitoring of employees and customers, and, potentially, blood tests to determine whether workers have likely immunity to the virus. Officials and business leaders predict that operations won’t fully return to normal until an effective vaccine hits the market, estimated at least a year away.” (Wall Street Journal, subscription required)
- Some California Tenants Who Are Deferring Rent Payments Being Asked About Savings “California renters who have lost income because of the coronavirus shutdown are protected from eviction for 90 days after the health emergency is over, California’s courts have ruled — giving tenants tacit permission to defer paying rent for three months. But what about tenants who have lost income but can pay rent from their savings or investments? Are landlords permitted to ask that tenants dip into their savings or 401(k) accounts in order to meet their rent obligations?” (San Francisco Chronicle)
- Nursing Home Deaths Soar Past 3,600 in Alarming Surge “More than 3,600 deaths nationwide have been linked to coronavirus outbreaks in nursing homes and long-term care facilities, an alarming rise in just the past two weeks, according to the latest count by The Associated Press. Because the federal government has not been releasing a count of its own, the AP has kept its own running tally based on media reports and state health departments.” (Associated Press)
- Time for Some Kind Bargaining in Commercial Real Estate “Good business people know how to strike a deal that benefits all parties, and in the time of COVID-19, responsible business people will negotiate deals where all parties share in the pain. Nowhere will this be more important than in commercial real estate.” (Houston Chronicle, subscription required)
- Herb Weitzman Warns That a Shopping Center Rebound Won’t Happen Overnight “Herb Weitzman knows a thing or two about downturns. He’s seen his share of shakeouts after more than 50 years in the retail real estate business. But Weitzman — who founded one of the state’s largest commercial real estate firms — said no one could have predicted the property market impact of the current pandemic.” (Dallas Morning News)
- How the Coronavirus Pandemic Is Impacting Buzzy Startups, from Peloton to ThirdLove “Now, many of these startups, some of which raised a lot of money on the promise of rapid growth, find demand is drying up as consumer spending stalls and unemployment is set to surge. Business Insider has been reporting on how the coronavirus pandemic threatens these companies' growth, the fallout so far on companies like Convene and sectors like AI, and how they're pivoting in the face of the crisis.” (Business Insider)
- Dunkin Donuts Upgraded at Credit Suisse on Resilience During Pandemic “Dunkin' Brands got a double-shot upgrade from Credit Suisse analysts, citing the strength of the chain's business model, which relies on individual franchise owners. Credit Suisse lifted its rating on the Canton, Mass., quick-service chain two notches, to outperform, from underperform, according to published reports. The investment firm also boosted its price target on Dunkin' to $67 a share, which indicates 16% upside from the stock's Thursday closing price.” (The Street)
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