In its legal complaint Wednesday, Simon said that Taubman is uniquely vulnerable as stores reopen because most of its properties are indoor malls “that many consumers will avoid.” Simon also said Taubman broke its contract obligations by taking on more debt during the pandemic rather than cutting costs.
Taubman plans to fight Simon, calling its legal claims “invalid and without merit." It plans to go ahead with a shareholder vote on the deal later this month at its headquarters in
Shares in
The pandemic has created more havoc in an already stressed retail environment, particularly for malls. Last month, a private equity firm backed out of a deal to buy
Malls have struggled for years as shopping moved online and consumers grew tired of them. Their plight even inspired a haunting YouTube channel called the Dead Mall Series.
The coronavirus has delivered a devastating blow to those that remain and also stores with a big mall footprint.
In malls that have reopened, drinking fountains are disabled or taped off, play areas for kids are closed, and sitting in a food court is done at a distance from other humans.
Retail consultant
CBL, a
On Wednesday, shares of any retail chain with stores in malls plummeted. Kohl's,
AP Retail Writer Anne D'Innocenzio contributed to this story.
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