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1. Justice
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Justice has not paid any of its store rents since March 2020, according to the Datex tenant track report. The children’s clothing store’s parent company, Ascena Retail Group, filed for bankruptcy in late July and plans to close nearly a third of its 2,800 stores after years of declining sales and ballooning debt, reports the Washington Post. Justice is permanently closing more than 600 of its U.S. stores as part of the Ascena bankruptcy.
2. Lane Bryant
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Lane Bryant, another retailer owned by Ascena Retail Group, has not paid any of its rent the past three months, according to the Datex report. More than 150 Lane Bryant stores are slated to permanently close as part of the larger company’s bankruptcy filing, reports USA Today. Ascena also owned the Dress Barn and closed all of the Dress Barn stores last year.
3. Chuck E. Cheese
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The children entertainment center and restaurant chain paid 3.09 percent of its rent at the end of July, after paying 26.63 percent of its rent at the end of June and 15.26 percent at the end of May. CEC Entertainment, the parent company of Chuck E. Cheese, filed for Chapter 11 bankruptcy at the end of June. The chain, along with business disruption caused by the coronavirus, had also been weighed down by debt accumulated in a private equity buyout several years ago, reports USA Today. In its bankruptcy petition, CEC listed $2 billion in debt and $1.7 billion in liabilities.
4. Regal Cinemas
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After paying none of its rent at the of May, the movie theater chain paid 13.05 percent of its rent at the end of July, slightly better than the 10.32 percent of rent it paid at the end of June. Regal Cinemas have been closed for almost five months in the U.S. due to the coronavirus pandemic, but they are gearing up to open on Aug. 21. While masks will be required in lobby, hallways, and restroom locations, moviegoers will be allowed to remove them while eating or drinking in the auditorium, meaning at any point while watching a movie or for the entire movie if they wish. Employees, on the other hand, will be required to wear masks and undergo daily health screenings.
5. Victoria's Secret
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Victoria’s Secret’s parent company, L Brands, announced in May that about 250 stores in the U.S. and Canada would permanently close this year. There are more than 1,000 Victoria’s Secret stores in the U.S., according to the company’s website. The retailer paid 13.46 percent of its rent at the end of July, after paying 11.70 percent of its rent at the end of June, and none of its rent at the end of May.
6. AMC Theaters
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AMC Entertainment, which owns the AMC Theaters chain, said it expects to open the doors to more than 100 cinemas, about a sixth of its nationwide locations, on Aug. 20, reports The Associated Press. But several states, including California and New York, are yet to allow movie theaters to reopen. The movie theater chain paid 15.35 percent of its rent at the end of July, 14.39 percent of its rent at the end of June and 10.03 percent of its rent at the end of May.
7. 24 Hour Fitness
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The gym paid 15.66 percent of its rent at the end of July, 8.89 percent of its rent at the end of June, and none of its rent at the end of May. Bankrupt 24 Hour Fitness Worldwide Inc. won court approval of a $250-million post-bankruptcy loan, allowing the gym chain to maintain operations at least until the new year, reports Bloomberg Law.
8. The GAP Inc.
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Gap Inc. will report its second quarter 2020 earnings results on August 27. The retailer paid 15.83 percent of its rent at the end of July, 6.22 percent of its rent at the end of June, and none of its rent at the end of May. The retailer is also being countersued by retail landlord Simon Property Group LP, which claims that it is "taking opportunistic advantage" of the COVID-19 pandemic to avoid making rent payments totaling $107 million, reports The Business Journals.
9. Foot Locker
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The sneaker chain paid 37.46 percent of its rent at the end of July, 26.33 percent of its rent at the end of June and 3.49 percent of its rent at the end of May. The retailer indicated sales at stores open at least a year surged 18 percent during the second quarter due to the reopening of many locations in June. Analysts had been expecting a drop of more than 20 percent for the same-store sales, reports CNN.
10. Bath & Body Works
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Bath & Body Works paid 42.37 percent of its rent at the end of July, after paying 6.25 percent of its rent at the of June and 0.17 percent of its rent at the end of May. Parent company L Brands, also the parent company of Victoria’s Secret, announced in July it is cutting 850 office jobs, or about 15 percent of its corporate workforce. L Brands, like other retailers, has been dealing with a sharp drop in sales after temporarily closing stores due to the coronavirus pandemic.
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1. Sportsman's Warehouse
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The firearms retailer has paid 100 percent of its rent over the past three months. The chain has been experiencing a net sales increase, primarily due to a surge in demand for firearms, ammunition and to a lesser extent, other essential products, including water filtration, food preparation and dehydrated food, as well as strong growth in its e-commerce platform compared to the prior year period, according to its first quarter report released in June.
2. Sprouts Farmers Market
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The grocer has paid 100 percent of its rent over the past three months. E-commerce sales at Sprouts Farmers Market increased by 500 percent in the second quarter, fueling an overall sales increase of 16 percent at the retailer’s 350 locations. In addition, Sprouts is on track to open 20 stores this year and is looking to reduce the size of its stores going forward, which is expected to improve profitability by minimizing operating costs.
3. The Habit Burger Grill
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The fast-casual restaurant chain has paid 100 percent of its rent at the end of both June and July, after paying 68.49 percent of its rent at the end of May. The Habit Burger Grill’s parent company Yum! Brands Inc., also the owner of KFC, Pizza Hut and Taco Bell, will pay a $0.47 per share dividend to shareholders of record at the close of business on Aug. 26, the company said in a news release. The distribution of funds is scheduled for Sept. 11.
4. J.C. Penney
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5. Century 21
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After paying none of its rent at the end of May and June, the department store chain paid 100 percent of its rent at the end of July. In mid-March, all Century 21 stores were closed due to quarantine restrictions. However, over the past month, all locations have reopened.
6. Century Theaters
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The reopening of select theaters is an expansion of the company’s test-and-learn process, an effort to establish protocols for cleaning, sanitization and new technology, as it prepares for a comprehensive opening, according to a news release. Century Theaters paid 99.96 percent of its rent at the end of July, 99.93 percent at the end of June and 19.60 percent of its rent at the end of May.
7. Wingstop
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The fast-casual restaurant chain, whose inside dining rooms remain closed, reported same-store sales growth of nearly 32 percent for the second quarter of 2020. The Dallas-based wing chain also added 23 net new units during the second quarter, including 17 new restaurants in June alone. The company expects to open 120 to 130 new locations during 2020, reports Restaurant Business. Wingstop paid 99.96 percent of its rent at the end of July, 98.76 percent of its rent at the end of June and 81.09 percent of its rent at the end of May.
8. Taco Bell
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Taco Bell paid 99.92 percent of its rent at the end of July, 99.73 percent of its rent at the end of June and 96.95 percent of its rent at the end of May. Same-store sales at Taco Bell declined by 8.0 percent during the quarter ended June 30, but parent company Yum Brands, also parent company of The Habit Burger Grill, said the fast-food chain has improved significantly since April.
9. Big Lots
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With 1,401 stores in 47 states, discount retailer Big Lots is persevering through the pandemic, reporting both sales and margin growth, according to Forbes. The Columbus-based retail chain also launched same-day delivery with on-demand last-mile provider Pickup. The new tool will allow delivery of many of its items, from food to furniture and mattresses from 1,100 of its 1,400 locations. The company said it's encouraged by the 70 percent surge in web traffic, according to Columbus Business First. The furniture retailer paid 99.89 percent of its rent at the end of July, 99.58 percent of its rent at the end of June and 96.90 percent of its rent at the end of May.
10. Stein Mart
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The discount men and women's department store chain paid 99.81 percent of its rent at the end of July, 85.22 percent of its rent at the end of June and 49.89 percent of its rent at the end of May. But the off-price chain announced it had filed for Chapter 11 bankruptcy protection, and will be permanently closing all of its stores. The retailer will be kicking off its going-out-of-business sales at all of its 279 locations, reports CNBC.