Daffy’s to liquidate; JEMB Realty Corp. to purchase leases
New York — An affiliate of Manhattan-based real estate company JEMB Realty Corp. has agreed to purchase the leases and certain intellectual assets of Daffy’s Inc. for $43 million, Bloomberg reported. The deal is subject to bankruptcy court approval.
Daffy’s filed for Chapter 11 protection listing assets of $60.2 million and debt of $70.5 million as of July 1. The chain operates 19 stores, with the majority in the New York City metro area.
A joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC will liquidate the chain’s merchandise,
"JEMB Realty Corp. is looking forward to capitalizing on its long-term experience and knowledge in the greater New York area and to have the opportunity to work with Daffy’s with respect to the orderly wind up of Daffy’s operations and to provide payment in full to all of Daffy’s creditors," said Morris Bailey, CEO, Jemb.
Daffy’s 19 locations will be closing by October as part of the liquidation process, JEMB plans to sublease 16 of them, Crain’s New York Business reported. The real estate company has also agreed to purchase the three remaining Daffy’s properties, including locations in East Hanover and Secaucus, N.J., and a site in Philadelphia, according to Crain’s.
Fred’s sales up 1.2% in July
Memphis, Tenn. — Discount-store operator Fred’s Inc. said Wednesday that its same-store sales increased 1.2% during the four weeks ended July 28, helped by markdowns that increased customer traffic. The company also raised its earnings guidance for the second quarter, citing a tax settlement with the state of Tennessee.
Total sales for the month rose 5% to $136.7 million.
Fred’s said that it completed negotiations with the state of Tennessee to settle a tax matter, which will help offset costs related to store closings and July sales markdowns, in the second quarter.
Report: Aurora Capital Associates interested in Daffys real estate
New York — Aurora Capital Associates, a real estate investment firm, is reported to be acquiring New York-based discount retailer Daffys with plans to sublease its stores, according to Crain’s New York.
Daffy’s, which operates 19 stores, in July announced plans to liquidate by October.
The company has several prime real estate sites, eight of which are located in prime shopping area of Manhattan.
Real Estate Weekly first reported the news concerning Daffy’s possible acquisition.