Simon Fires First Shot for GGP

Simon Property Group finally did what many expected, making a $10-billion bid for General Growth Properties. The move would make the REIT…enormous, upping its portfolio of 320 US malls and outlet centers to 520.

But this deal is far from over. General Growth shareholders don’t seem to be biting as of yet, and Simon could have some problems with General Growth’s creditors.

Filene’s Bankruptcy Finally Over

So Filene’s Basement is going to survive. The discount chain emerged from Chapter 11 bankrpuptcy, and it’s 23 stores are now owned by Syms Corp. and Vornado Realty Trust.

Both firms will operate Filene’s under its iconic name. But its flagship location in Boston’s Downtown Crossing is still in limbo.

Zhu Zhu Pets Save Toys’R’US

When Vornado Realty Trust and two other investors bought Toys”R”Us a few years back, many of us thought that the deal was simply a real estate play to get the retailer’s many prime real estate locations. But the chain is another category killer that Walmart hasn’t brought down.

This Star Tribune article explains how it’s the last specialty toy chain out there, surviving when KB Toys and other peers couldn’t.

Bids Heat Up for Filene’s

So there are people looking to buy out there.

Men’s Wearhouse, discount department-store chain Syms and Vornado Realty Trust are all looking to split up bankrupt Filene’s Basement store assets, according to this article. The move comes after investor Crown Acquisitions already agreed to buy 17 of the retailer’s 25 stores for $22 million.

Does Filene’s Have a Future?

In this economy, we find it strange that some discounter retailers can do so well, while others suffer.

Take the 100-year-old Filene’s Basement, for example, which filed for Chapter 11 bankruptcy protection yesterday. That discount clothing seller wasn’t able to hang on, yet much larger competitors like TJX Cos. and Ross Stores have done well in this environment.