Restructuring Roundup - August 2025

Bed Bath & Beyond Is Back With Plans For 300 New Stores, But None In California

August 21, 2025 (Forbes)

The old Beyond Inc., newly resurrected as Bed Bath & Beyond, is starting to open new stores, but executive chairman Marcus Lemonis announced that the company will steer clear of California because he considers the state too costly to operate in profitably, according to a company statement.

Court Ruling Secures Free Medical Records for Thousands After Crozer Health Collapse

August 21, 2025 (MSN.com)

Thousands of former Crozer Health patients, including Medicaid recipients, will now have free access to their personal medical records following a federal bankruptcy court ruling finalized this week, Attorney General Dave Sunday announced.

Bankrupt jewelry retailer Claire's to sell its North American business

August 20, 2025 (Reuters)

Jewelry retailer Claire's said it would sell its North American business to private equity firm Ames Watson for $104 million in cash, in a deal that will keep at least 795 retail locations in business. The sale agreement will "allow the Claire’s brand to remain a prominent retailer for teens, tweens, and young girls around the world," Claire's said in a court document filed.

Spirit Airlines raises going-concern doubts, months after exiting bankruptcy

August 12, 2025 (Reuters)

Aug 12 (Reuters) - Spirit Airlines (FLYY.A), opens new tab has warned of going-concern doubts, just months after emerging from bankruptcy as weak domestic demand and dwindling cash reserves strain its operations, sending its shares tumbling 42%. Adverse market conditions such as elevated domestic capacity and weak demand for leisure travel in the second quarter has resulted in a tough pricing environment for airline.

Court upholds 'Texas two-step' bankruptcy for Georgia-Pacific unit mired in lawsuits

August 1, 2025 (Reuters)

A U.S. appeals court ruled on Friday that U.S. bankruptcy laws can be used to address the debts of well-funded shell companies, extending the eight-year-long bankruptcy of a Georgia-Pacific unit that is saddled with the company’s liability for asbestos lawsuits.

Private investment platform Linqto files for bankruptcy amid SEC scrutiny

July 8, 2025 (Reuters)

Linqto, the investment platform that let users access shares of privately held companies, filed for bankruptcy on Tuesday, citing challenges stemming from alleged securities law violations. The company's move comes after months of investigation by the Securities and Exchange Commission and the Financial Industry Regulatory Authority, Wall Street's self-regulator.