Cotenancy Clauses Alive and Well

Ann Taylor is backdooring its way out of all sorts of leases - along with dozens of other major players.

Ann Taylor Closing 72 Stores; Opening 30
Women's apparel retailer, Ann Taylor Stores Corporation, recently reported its fourth quarter results, which included better-than-expected sales and gross margin results.

During 2009, Ann Taylor opened 14 new stores, but closed 42 stores. Additionally, the company converted 11 Ann Taylor stores into Loft stores; which all together created a 3% reduction for the retailer in 2009. Currently, Ann Taylor operates 907 stores comprised of 291 Ann Taylor stores, 506 Loft stores, 92 Ann Taylor Factory stores and 18 Loft Outlet stores.

Ann Taylor expects to close another 72 stores this year, which would complete its previously announced restructuring program set to include the three-year closure of 174 stores. Of the 2010 closures planned, 14 will shutter in the first half of the year, while the remaining 58 will shutter in the last half of the year. Aside from these closures, Ann Taylor is planning to open 20 Loft Outlet and 10 Loft stores during 2010. In total, the company expects store square footage to be down about 3% for the year.

The average Ann Taylor store is 5,312 square feet; the average Ann Taylor LOFT store is 5,882 square feet; and the average outlet store is 6,667 square feet.