Retail Solutions

A closed “dark store” often does not free the retail chain from continuing to pay their lease obligations.
Inventories that are older and perhaps obsolete with no recourse of return privileges are often items that if
discounted at these stores, cannibalize higher margin current inventory sales.

Lease obligations remain an ongoing drain of cash as well as being an impaired liability that still stays
on the balance sheet. Retailers can try to negotiate an early discounted early termination, but with their
corporate guarantee ensuring the lease obligation, any payout discounts with their landlord is usually
either a remote possibility or a big loss.

TJI’s strategy is to seek to monetize wasting assets in a way not commonly done before. Options include
creating a barter opportunity for the retail chain that will not only take the lease liability off of their books,
but also result in increased sales at their other locations. This can include cash payments, gift cards,
trade in of outdated or obsolete inventory, reallocation of media dollars through TJI’s in house media
department, and more.