FAST FIVE: Shopocalypse Now! 5,994 Stores Already Closed In 2019, Blowing Past 2018's Full Year Total
And retail sales have begun falling again recently, down 0.2% in February from a month earlier, after being up 0.7% in January.
Ana Lai, an analyst at S&P Global Ratings said: “I don't think malls are out of the woods yet.” S&P still has a negative outlook on the United States retail sector overall and predicts that roughly 12 of the 136 retailers that it rates will wind up defaulting this year.
And even though the mall owner, Pyramid Management Group, says that it is trying to discuss an extension, the servicer is expecting a default from the owner in June.
A Pyramid spokesperson said: “Destiny USA has experienced tenant closures, just as other properties across the country have on the brick and mortar front.
Back in February, we noted that default rates on retail junk bonds had risen to 10.2% as of December, according to Fitch Ratings, more than double the level from the same period in 2017.