Quote:
Originally Posted by Hack&Lube
I wonder if Target made any attempt to re-negotiate their leases? They had a pretty big stick and could have told the landlords "if you don't reduce our rate, we won't be profitable until 2021 and we are going to exit and leave millions of square feet and empty anchors hanging".
Almost all those locations are still empty today and there's no indication there are any Canadian retailers ready to fill up those spaces given that we are going into a downturn.
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They might have, but not in so many words as it was quite a shock and some of the leasing guys for the major retailers were side-swiped and pissed right off when it happened. I'd wager the savings in the leasing costs would have been negligible and you had a CEO who simply wanted to end the fiasco as he could do so and forever blame someone else vs. continue to try and shoulder some blame.
No one can ever claim he was wrong to pull out. No one can ever say he should have stayed. It was a win / win for the new CEO as hindsight would never be available.