New York & Co. filed for bankruptcy, another bad sign for the South Florida retail market
Another retail chain filed for Chapter 11 on Monday, spelling more bad news for the South Florida retail market, according to one retail expert.
The parent company of New York & Co., RTW Retailwinds, filed for Chapter 11 to the New Jersey Bankruptcy Court. New York & Co, established in 1918, has about 357 locations across the United States, according to its website. It had three locations in Miami-Dade and one in Broward, including Broward Mall, Dolphin Mall, Palms at Kendall T&C and Westland Mall. The company is anticipated to close many, if not all, of its locations.
More bankruptcy filings and, in turn, higher retail vacancies in South Florida are expected, said Greg Masin, commercial real estate broker for Cushman & Wakefield.
“We are going to be lost in the short-term. ... We are in for another tough time in the next few months,” he said.
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Other retailers have filed for Chapter 11 during the pandemic. CMX Cinemas, Lucky Brand, J.Crew and Neiman Marcus are also expected to close at least some of their locations.
“In the scheme of things, New York & Co.’s demise is not going to register in the consumer marketplace. It is indicative of overall brands being able to differentiate themselves with their customers or risking falling by the wayside because they can’t create that loyalty,” Masin said.
Some South Florida neighborhoods saw more retailers entering their market than leave in the second quarter of 2020. That may not be the case for the months, or even years, ahead as vacancy rates are anticipated to grow throughout Miami-Dade and Broward, Masin said.
South Florida’s population growth is expected to draw retailers in the long term. But in a post-COVID-19 world, Masin said, retail shopping may look different. “Commercial space has a way of evolving to consumer needs. There may not be as many dress shops because people can buy their clothes online.”
