HRI Holding Corp, aka the Houlihan’s restaurant chain, filed for Chapter 11 bankruptcy in Delaware under docket number 19-12415 on Thursday, November 14, 2019.
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Sears Wants It’s Money Back… Debtor Filing Preference Complaints Against Trade Creditors
This past week, Chapter 11 debtor Sears Holdings Corporation (“Sears”) filed hundreds of preference complaints to recover money from paid pre-petition creditors.
For most creditors, it must seem odd to be receiving a complaint to return money for goods or services sold prior to October 15, 2018 (the date when Sears filed for bankruptcy protection). However, the practice of recovering “preferences” in bankruptcy is allowed by federal statute – 11 U.S.C. 547. Before you go a writing a check to Sears, know what defenses you have against this statutory claim.
Destination Maternity Files for Chapter 11 Bankruptcy
Destination Maternity Corporation filed for Chapter 11 bankruptcy on Monday in Delaware under docket number 19-12256.
The large maternity-wear retailer owns approximately 458 U.S. stores comprised of 362 Motherhood Maternity Stores, 26 Pea in the Pod stores, and 70 Destination Maternity stores.
Perkins & Marie Callender Files for Chapter 11 Bankruptcy
Perkins & Marie Callender’s LLC, filed for Chapter 11 bankruptcy this morning in Delaware under docket number 19-11743.
The Memphis, Tenn. family-dining chain previously filed in 2011. Prior to filing, the company operated more than 400 locations in the two brands, including 400 Perkins Restaurant & Bakery locations (134 company and 266 franchised) and 38 Marie Callender’s restaurants (8 company and 30 franchised.
Charming Charlie Bankruptcy: Retailer Files for Second Chapter 11 Bankruptcy
Charming Charlie, the teen jeweler and accessory retailer, filed its second Chapter 11 bankruptcy case in less than two (2) years this morning in Delaware under docket number 19-11534.
This Chapter 22, which is the filing of two (2) Chapter 11 bankruptcies in a short period of time, appears to mark the end of the retailer. It lists in its filings that it has plans to close all 261 stores. The company emerged from its prior Chapter 11 bankruptcy, where it shed about 100 stores, only 14 months ago. According to USA Today, the company expects to vacate its stores by August 31, 2019.
Halfway Thru the Year – More Retailers to Watch for a Bankruptcy Filing in 2019
Earlier this year we noted 10 potential retailer bankruptcies to watch in 2019. Four (4) of those retailers, Payless, Gymboree, Charlotte Russe, and Things Remembered, filed within months of our report.
The following is a revised list of potential Chapter 11 retailer bankruptcy filings to watch for during the second half of the year.
ICSC RECon 2019 Wrap-Up
ICSC’s RECon 2019 in Las Vegas provided a very good vibe for new deals and excitement not seen since before 2007. Unofficial statistics noted that attendance was up, likely above 37,000 with more than 12,000 exhibitors. Low interest rates, heightened consumer demand and an overall positive national economic outlook provided the backdrop for the increased optimism. Here are a few take-aways from this year’s show.
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Don’t Call it a Comeback: Toys “R” Us Returning After Bankruptcy?
About a year after filing for Chapter 11 bankruptcy, Toys “R” Us appears to be making a return to the retail market as a national chain.
After the former toy retail giant liquidated its business last year, its lenders took control of the company’s intellectual property, which includes the Toys “R” Us, Babies “R” Us, and Geoffrey brand names.
In late January 2019, several former Toys “R” Us executives started running a new company called “Tru Kids” to manage those brands.
Things Remembered Files for Chapter 11 Bankruptcy Protection
53 –year old gift engraver and retailer, Things Remembered Inc., filed on Wednesday for Chapter 11 bankruptcy protection in the District of Delaware docket #19-10234. The chain operates more than 400 locations, nationally, and expects to close about 250 stores in its initial efforts to reorganize under the Bankruptcy Code.
Enesco, the giftware and home and garden décor company, is the stalking horse bidder to take approximately 130 of Things Remembered leases in the bankruptcy case with court approval. The stalking horse bid is $17.3 million.
Charlotte Russe Files for Chapter 11 Bankruptcy Protection
Charlotte Russe Holding, Inc. (“Charlotte Russe”), the women’s fashion retailer filed for Chapter 11 bankruptcy protection in the District of Delaware docket #19-10201. The chain operates more than 500 locations, nationally, and is closing about 90 stores in its initial efforts to reorganize under the Bankruptcy Code.
CNN reports that it secured $50 million for initial bankruptcy funding to continue running about 400 Charlotte Russe and Peek Children’s stores for the next few months.