In late September, Danish fashion house BESTSELLER announced the of its new Montreal headquarters, a strategic milestone in the company’s history and growth. Located on Rue de Liege East at Ave de l’Esplanade also doubles as a showroom for its fashion labels currently available in Canada. The labels include Jack & Jones, JJXX, Noisy May, Only, Only & Sons, Pieces, Selected Homme, Vero Moda and Y.A.S. “We’re thrilled to unveil our new headquarters in Canada’s fashion capital of Montreal,” said Erman Ozgur, Director of North America. “The sleek and state-of-the-art space perfectly encapsulates BESTSELLER’s Danish roots while embodying our commitment to style and quality without excess consumption. This opening marks an exciting step forward in our mission to become Canada’s premier fashion house and platform.” (BESTSELLER – www.bestseller.com)……..
BGO, a global real estate investment management firm and globally-recognized provider of real estate services, announced this week the completion of its inaugural investment for the firm’s newly launched Value-Add strategy in Canada. The acquisition comprises a two-property, small-bay industrial portfolio totaling approximately 236,000 square feet. The BOMA Best-certified portfolio, which is presently 95 percent leased, is situated in Montreal’s West Island, near Montreal-Pierre Elliott Trudeau International Airport and near the Trans-Canada Hwy. Equitable Life of Canada, one of Canada’s largest mutual life insurance companies, will be co-investing alongside BGO on the transaction. BGO’s Canadian Value-Add strategy seeks to capitalize on growth opportunities in Canada’s top real estate sectors and markets by utilizing a hands-on asset management approach and best in class operating principles. BGO Properties, the real estate services division of BGO, will manage all property management and leasing activity for the two-property portfolio. (BGO/BentallGreenOak – www.bgo.com)……..
Earlier in the week, cannabis and consumer packaged goods company Canopy Growth Corp. announced that it has completed the sale of its Hershey Dr. facility in Smiths Falls in Eastern Ontario, in connection with the previously announced agreement with Hershey Canada, Inc. for cash consideration of approximately $53 million(Cdn). The sale of the facility follows the centralization of post-harvest manufacturing at the company’s former beverage facility in Smiths Falls, as well as the consolidation of all flower cultivation in the company’s purpose-built sites in Kincardine in Southwestern Ontario and Kelowna, British Columbia. (Canopy Growth Corp. – www.canopygrowth.com)………
Digital-first omni-channel retailer of authenticated pre-owned luxury handbags and accessories, Montreal-based LXRandCo Inc. reports that as a result of its previously publicly disclosed effects of a weakening economy and the negative impact on its higher AOV discretionary consumer products and other factors, it has generated significantly lower revenues in the third quarter than anticipated, which may result in a breach of certain banking covenants, which would in turn result in liquidity issues in its fourth quarter. The company is in discussion with its bank lenders regarding possible alternatives to address its financial situation. These discussions are ongoing and there can be no assurance, what form, if any, these alternatives will take. (LXRandCo Inc. – www.lxrco.com)………
U.S. department store chain Macy’s Inc. has announced an accelerated expansion of its small-format store strategy, potentially tripling the total number of its small-format stores through Fall 2025. Beginning in 2024, up to 30 new Macy’s small-format locations will open across the country. This expansion is in addition to the nearly 15 small-format Macy’s and Bloomie’s locations that Macy’s, Inc. currently operates. “Our small-format stores are efficient to operate, provide the customer with a shopping alternative within our omnichannel ecosystem and present a unique opportunity to target high-traffic shopping centers,” said CEO, CFO Adrian Mitchell. “Our small-format strategy is one way we intend to harness the full power of the Macy’s brand to deliver sustainable, profitable sales growth for Macy’s, Inc. beginning in 2024.” (Macy’s Inc. – www.macysinc.com)……..
Neighbourly Pharmacy Inc., the growing network of independent pharmacies, reports that based on the unanimous recommendation of a committee of independent directors of its board of directors, it has entered into a letter of intent with an affiliate of Persistence Capital Partners, with the intentions of taking the company private. “PCP believes that taking Neighbourly private is the best way to unlock its full potential and create long-term value for all stakeholders,” said Stuart Elman, Managing Partner of PCP. “As a private company, Neighbourly will have more flexibility and resources to pursue its strategic vision to advance the role that independent pharmacies can play in Canada. We are confident that this proposed transaction will benefit Neighbourly’s customers, patients, employees, and partners, as well as provide a fair and attractive return to its public shareholders.” Since 2015, Neighbourly has expanded its diversified national footprint to include 291 locations. (Neighbourly Pharmacy Inc. – www.neighbourlypharmacy.ca)…….
Krispy Kreme, Inc. is exploring strategic alternatives for its Insomnia Cookies to include considering an all-cash sale. Krispy Kreme acquired a majority stake in Insomnia Cookies in 2018 and expects revenues of approximately $230-million(US) in fiscal year 2023. Insomnia Cookies, the cookie brand known for serving warm cookies all day and late into the night, has rapidly grown since the 2018 acquisition, operating in three countries with over 250 bakeries. It is a pioneer and industry leader in digital marketing and eCommerce revenue, with 45 percent of revenue generated digitally. (Insomnia Cookies – www.insomniacookies.com) & (Krispy Kreme Inc. – www.krispykreme.com)………
Gee, Target is closing stores due to the growing shoplifting. Walmart closed stores in Chicago in the Spring, citing shoplifting and security concerns. And others have blamed major losses on organized shoplifting. Hmmm, you don’t think being over-stored had anything to do with this talk of closing, do you? Afterall, it wouldn’t be the first time that the retail industry forgot the basic retail principles and adopted the real estate approach of picking up close by locations to keep it out of the competitor’s hands. That works when the economy is booming. It doesn’t work when the economy is heading for an ‘adjustment’. But hey, thanks to the great live footage on CNN and CBC, looters have become a great reason to cut your losses and walk away…………………..Have a great week and have a great Thanksgiving……….