Crispin Odey Makes a Killing on Britain's Retail Apocalypse
Shopping mall owner Intu is at the epicenter of the British high street storm, and its high debts make it ill-equipped to cope.
Shopocalypse.
Photographer: PAUL ELLIS/AFPAs the e-commerce boom lays waste to bricks and mortar retailers, it was only a matter of time before Britain’s high street landlords were hobbled too. U.K. shopping center owner Intu Properties Plc is at the epicenter of this particular storm and is ill-equipped to cope because it has too much debt.
A trading update this week confirmed that it’s in a very tight spot and raising equity is now considered “likely.” The stock dropped 24% over two trading sessions, swelling total losses over the past year to 84%. Hedge Fund Odey Asset Management and other short-sellers have made a killing here. Shareholders’ best hope of salvaging more value is that someone makes a takeover bid.