calsInternationalDrug Fair Files Bankruptcy, Walgreens to Keep Most Stores Open
By: Sasha M Pardy
Drug Fair Group, a New Jersey drug store operator, filed Chapter 11 and agreed to sell substantially all of the assets associated with 32 of its stores to Walgreens for an undisclosed amount. Drug Fair intends tocontinue operating as normal throughout the bankruptcy process and until its sale to Walgreens is complete.To do this, Drug Fair secured a four-month, $40 million, debtor-in-possession facility. Prior to filingbankruptcy, Drug Fair sold some assets related to 13 of its stores to third parties, including Walgreens;which specifically purchased prescription files from 11 Drug Fair stores. Walgreens said it plans to keepmost, but not all of the acquired Drug Fair stores open. As of Jan. 31, 2009, Walgreens drug store fleet wascomprised of 6,659 stores, including 112 stores in New Jersey. According to CoStar Tenant, the typical DrugFair store is 15,000 square feet. Drug Fair leases a 200,723-square-foot building that serves as itsheadquarters on Cottontail Lane in Franklin Township, NJ.www.costar.com watch list - Mar. 15-21
Life Sciences Files Ch. 11 To Block Eviction
Life Sciences Inc. this week filed a voluntary petition for relief under Chapter 11 in Tampa, FL. The filingeffectively blocks Simon and Louis D. Srybnik's attempt to evict Life Sciences from its manufacturing,laboratory and office facilities at 2900 72nd St. North in St. Petersburg, FL, because of 9.5 years of allegedlydue back rent. Making matters more intriguing is that the Srybniks are the direct and indirect beneficialowners of more than 60% of the common stock of Life Sciences. Simon Srybnik had been chairman andCEO until he resigned last November.
Additional Lease Cancellations
Separately and outside of bankruptcy court reorganizations,
., a specialty pharmaceuticalcompany, agreed to terminate the lease of its current headquarters at 500 Arsenal St. in Watertown, MA,and relocate to its facility in Tewksbury, MA. Acusphere will make a one-time payment of $800,000 andforfeit its security deposit of $997,500. It will also pay its final monthly rent for March 2009 and operatingexpenses of approximately $65,000 per month from April 2009 through July 1, 2009, unless the lease isterminated earlier by the landlord.
Northstar Neuroscience Inc
. entered into a lease termination agreement with its landlord at its corporateheadquarters at 2401 Fourth Ave., Suite 300, in Seattle, WA. The agreement releases the company fromfuture lease payments totaling approximately $4.2 million through 2012. Northstar will pay the landlord $2.4million, surrender its $100,000 previously paid security deposit, and assign an existing sublease and relatedsublease deposit to the landlord.
Panacos Pharmaceuticals Inc
. entered into a lease termination with Saul Holdings LP effective as of March 31 for 14,902 square feet of space in Avenel Business Park, Phase II at 209 Perry Parkway inGaithersburg, MD. Panacos agreed to pay to Saul $268,593.
Closures & Layoffs
Inc. based in South San Francisco has ended further development of GVAX immunotherapyfor prostate cancer. The action has resulted in the reduction of the company's 290 person staff byapproximately 90%. The company anticipates further reductions in the first half of 2009 as additionalactivities are phased out.
Company Address City State Closure or Layoff # Affected Impact DateWadleyHealthSystem
100 Pine St. Texarkana TX suspension 771 3/6/2009