News & Analysis as of

Retailers Bankruptcy Code

Stark & Stark

A BIG LOTS Chapter 11 Lesson: Caution Needed When Doing Business with Chapter 11 Debtors

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Vendors, landlords, and other creditors often feel a sense of security when doing business with Chapter 11 debtors. The Bankruptcy Code, and even court orders entered at the outset of a bankruptcy case, seemingly provide a...more

Arnall Golden Gregory LLP

Restructuring Roundup - July 2024

AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains...more

Arnall Golden Gregory LLP

Restructuring Roundup - June 2024

AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains...more

ArentFox Schiff

Understanding Suppliers’ Rights and Remedies in Retail and Hospitality Bankruptcies

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On May 14, Outfox Hospitality LLC, the parent company of the retail chain Foxtrot Market, along with its affiliates, filed for Chapter 7 bankruptcy protection in the Bankruptcy Court for the District of Delaware, with the...more

Ballard Spahr LLP

Bankruptcy Court Finds There Is No Excuse for Inconvenienced Creditors

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The U.S. Bankruptcy Court for the Eastern District of Virginia held recently that unsecured creditors who fail to monitor bankruptcy proceedings for treatment of their claim do not show “excusable neglect” and must face the...more

Stark & Stark

JOANN’s Chapter 11 Bankruptcy Filing: Stitching Together a Reorganization

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​​​​​​​JOANN, Inc., aka Jo-Ann Stores Holdings Inc. aka JOANN aka Jo-Ann Fabrics and Crafts, the 80-year-old, Ohio-based, arts-and-crafts operator filed for Chapter 11 bankruptcy protection in the District of Delaware...more

Holland & Knight LLP

The Real Estate and Corporate Restructuring Connection, Plus Retail Restructuring Trends

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The transition to online shopping, interest rate increases, labor costs, maturing debt and rising inflation have collectively taken a significant toll on the retail industry, contributing to store closures and a growing...more

Proskauer Rose LLP

Retailer’s Status as a “Financial Institution” Immunizes $1 Billion Fraudulent Transfer

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When leveraged buyouts (“LBOs”) fail, the selling shareholders are litigation targets. A common suit is a claim by a bankruptcy trustee asserting constructive fraudulent transfer claims seeking to claw-back payments to the...more

Cole Schotz

Top Considerations for Vendors Dealing with Distressed Companies

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As of March 2023, commercial chapter 11 filings were up 79% compared to the same period of 2022, which includes a number of large retailers. The first quarter of 2023 saw the highest number of corporate bankruptcy filings in...more

Vicente LLP

Revised New York Adult-Use Cannabis Regulations: What You Need to Know

Vicente LLP on

On May 11, 2023, New York’s Cannabis Control Board voted to approve the revised adult-use cannabis regulations. Upon publication in the New York State Register, these draft regulations are subject to another 45-day public...more

Seward & Kissel LLP

Beyond Your Wildest Dreams, Coin Cloudy Forecast, Robinhood to Give to the Recently Poor, and No Place Like Home Décor

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Bed Bath & Beyond is closing 149 more stores | CNN - Bed Bath & Beyond has expanded its list of additional stores they expect to close, from 87 to 149. In total the company is reducing its store count from 760 to about...more

Pillsbury Winthrop Shaw Pittman LLP

Acquiring a Distressed Business in the United States: Key Issues for Prospective Buyers

Prospective buyers should prepare to take advantage of opportunities to acquire distressed businesses, as we are likely to see an uptick in distressed M&A soon. Prospective buyers seeking first-mover advantages should act...more

Farella Braun + Martel LLP

Bankruptcy Provisions in COVID Relief Legislation Impacting PPP Loans, Commercial Leases and Preference Claims

With the COVID-19 pandemic stretching on into another year, businesses continue to experience adverse effects. Bankruptcy filings, especially among retailers, were higher than average in 2020, and it is likely that more...more

Morrison & Foerster LLP

Commercial Landlords (And Their Lenders) Beware: Bankruptcy Courts Are Shifting Risks To Lessors In Response To The Exigent...

The COVID-19 pandemic has triggered unprecedented levels of business disruption and forced numerous companies into bankruptcy in an effort to preserve dwindling liquidity and postpone creditor demands. Retailers, whose...more

Herbert Smith Freehills Kramer

A Look at Retail Restructurings: Forever 21

Kramer Levin was selected as counsel to the Official Committee of Unsecured Creditors of Forever 21 and its affiliates, which filed for Chapter 11 protection in Delaware on Sept. 29, 2019. Forever 21 is a specialty fashion...more

Fox Rothschild LLP

Wet Seal – Preference Actions Filed

Fox Rothschild LLP on

On August 29, 2017, The Wet Seal, LLC filed preference actions against 67 defendants. The lead Wet Seal bankruptcy case is Case No. 17-10229 in the Bankruptcy Court for the District of Delaware. Wet Seal is represented by...more

Herbert Smith Freehills Kramer

Suppliers Beware: Two Recent Cases (in Third Circuit and Delaware) Hold that Debtor Must Physically Possess Goods Within Statutory...

Amidst a surge in retail bankruptcies, two recent decisions construing section 503(b)(9) of the Bankruptcy Code directly limit suppliers’ ability to seek administrative claims for goods shipped to a debtor in the period...more

Shumaker, Loop & Kendrick, LLP

Everything Must Go: Retail Chapter 11 Filings

The global retail sector is struggling. Throughout the world, previously successful and storied retailers and brands are facing increasing pressure from the “online” retailers. Originally published in the Spring 2017...more

Seyfarth Shaw LLP

How Sports Authority’s Bankruptcy Filing Impacts Landlords and Trade Creditors, and Creates Opportunities for Retailers

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On March 2, 2016, Sports Authority, Inc. (“Sports Authority”) and six of its affiliates filed for Chapter 11 bankruptcy in Delaware. The filing will significantly impact Sports Authority’s landlords and trade creditors. In...more

Buchalter

Dealing with Restaurant and Retail Leases in Bankruptcy

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The recent Great Recession and the wave of bankruptcy filings that accompanied it presented a number of challenges for landlords and tenants. Yet, as the economy has recovered, we still continue to see restaurant and retail...more

Patterson Belknap Webb & Tyler LLP

Tough Choices Confront Trade Creditors When a Retailer Faces Bankruptcy

The Great Recession, which began in December 2007 and officially ended in September 2009, has been especially hard on U.S. retailers, and its impact likely will be felt for many more years. Retailers sustained record-breaking...more

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