Bankruptcy & Creditor's Rights

The “Back-to-School” shopping season has begun! The season accounts for a significant portion of sales for retailers in the US, as households buy school supplies, clothes, and student decor. As of June 2021, it looked as though the pandemic was possibly coming to a close, or at least manageable, in the United States. However, the rise of the Delta variant has changed that outlook with mask mandates going into effect to protect the vulnerable and slow the infection rates. Regardless of these ongoing developments, everyone needs to purchase new items and supplies. As such, back-to-school numbers will be a true barometer for the economy as many people return to pre-pandemic routines, including full days in school and returns to the office.

According to U.S. News & World Reports, consumer confidence stayed unchanged from June to July 2021, surprising many economists who were expecting a decline. CNBC notes that this steadiness and consumer conference may have been spurred by the continued monthly payments for the child tax credits which will continue for about 39 million households (nearly 90% of children in the U.S.) through December 2021. Bloomberg cites a Deloitte LLP forecast that spending reach $32.5 billion, up 16% from 2020 and 17% from 2019.

Continue Reading Top Five (5) Signs to Watch for During the Back-to-School Season Cautious Optimism for Retailers

AMC Logo | AMC BankruptcyThe tide has turned from last year! Slowly, the global Pandemic is coming to an end. In its wake, the retail industry has been forever changed with technological innovations and advancements, including online ordering and delivery/pickup, warehousing, automation, and mobile self-check-out. Although most landlords and tenants have worked together during the adversity, there are still a number of problem tenants that may not be able to recover or who may now use the bankruptcy process to get rid of debt and actually restructure.

Continue Reading 10 Retailers to Watch for a Bankruptcy Filing in the Second Half of 2021

Old Country Buffet’s parent corporation, Fresh Acquisitions, LLC, filed for Chapter 11 bankruptcy protection on Tuesday, April 20, 2021, in the Northern District of Texas, docket # 21-30721. The San Antonio-based company operates six (6) restaurant chains in 27 states – Ryan’s, Old Country Buffet, Tahoe Joe’s Famous Steakhouse, Fire Mountain, Furr’s Fresh Buffet, and HomeTown Buffet. According to Restaurant Business, this is the fifth time that the company’s various chains have filed for bankruptcy protection since 2008.

Continue Reading Old Country Buffet’s Parent, Fresh Acquisitions, Files for Chapter 11 Bankruptcy in Northern District of Texas

2020 marks the year of COVID-19, economic shutdowns, unemployment, and business closings. However, with approximately $4 trillion dollars in pandemic aid, many individuals were able to avoid foreclosure and bankruptcy. With federal funding providing an additional $600 per week to unemployment checks, many individuals received more in unemployment benefits than they would have received in their paychecks. Mortgage foreclosure moratoriums also assisted individuals financially impacted by the pandemic. What is in store for 2021 with federal stimulus and forbearance plans ending, and unemployment on the rise? 2021 may mark the year of soaring bankruptcy filings.

Continue Reading A Rise in Bankruptcy Filings for 2021 and How Associations Should Brace for Impact

The global pandemic has upended retail across the country. In most cases landlords and tenants are working together to get through this adversity. Although vaccines are expected before the end of the year, the distribution will not likely be available to everyone until at least mid-2021. As such, the retail industry is expected to have a tough slog through at least the first part of the year.

Continue Reading 20 Retailers to Watch for a Bankruptcy Filing in the First Half of 2021

Youfit Health Clubs filed for Chapter 11 bankruptcy this morning in the District of Delaware, docket #20-12853 MFW. The club with more than 80 locations in Alabama, Arizona, Florida, Georgia, Louisiana, Maryland, Pennsylvania, Rhode Island, Texas and Virginia, follows in the footsteps of other health clubs that have filed for Chapter11 protection in the last few months, including New York Sports Clubs and 24-Hour Fitness.

Continue Reading Youfit Health Clubs Files for Chapter 11 Bankruptcy in Delaware

Ascena Retail Group, Inc., the parent of the Ann Taylor, Lane Bryant, Lou & Grey and LOFT retail chains, filed for Chapter 11 bankruptcy on Thursday, July 23, 2020 in the Eastern District of Virginia, docket # 20-33113. According to MarketWatch, the New Jersey-based company expects to reduce debt to become profitable. Ann Taylor, Loft, Lane Bryant and other chains will continue to operate through the restructuring with about 95% of stores open, while the company reduces its footprint.

Continue Reading Ascena Files for Chapter 11 Bankruptcy in Virginia

The unprecedented global pandemic has created a limbo for most retail tenants, and in some cases, left landlords without payment of rents. Further, some states have placed moratoriums on eviction actions, allowing tenant to stay and not pay. However, as states begin to open back up for business there appears to be light at the end of this tunnel. Still, expect a host of retailers to file for protection in July and August to eliminate stores and try to renegotiate rents.

Although we normally provide a list of 10 retailers to watch, we have increased the list to 20 given the current state of affairs. Following are the top 20 to retailers to watch for possible Chapter 11 filing(s) in the remaining year:

Continue Reading 20 Retailers to Watch for a Bankruptcy Filing in the Second Half of 2020

Hair cuttery bankruptcyGovernment orders directing the shut-down of non-essential retailers, as a result of COVID-19, have forced another retail chain into bankruptcy. Creative Hairdressers, Inc. (“Creative”), the parent of Hair Cuttery, filed for Chapter 11 relief yesterday in the bankruptcy court for the District of Maryland. According to its first day filings, Creative is one of the largest independent, family owned chain of hair salons that provides comprehensive services for men and women.

Continue Reading Hair Cuttery Enters Chapter 11 Bankruptcy – Seeks to Trim 49 Locations

In an ironic bankruptcy twist, the COVID-19 outbreak is thwarting Modell’s Sporting Goods’ ability to liquidate. Modell’s filed its bankruptcy case on March 11th and announced that it was closing all 134 of its stores. The chain was founded by Morris A. Modell in 1889, with a single store on Cortlandt Street in Manhattan. Modell’s followed in the footsteps of The Sports Authority, Gander Mountain, Eastern Mountain Sports, and other sporting goods retailers who have struggled mightily in recent years, and have landed in Chapter 11. Modell’s intention was to complete all liquidation sales by the end of April. The budgets filed with the bankruptcy court reveal no line item for lease expenses starting in May.

Continue Reading COVID-19 Forces Modell’s to “Mothball” Chapter 11 Efforts