Category: Bankruptcy
Bankrupt Retailers Seek Extraordinary Relief in Time of COVID
The COVID-19 pandemic has forced big-name brands to pursue unique strategies to secure fiscal relief. Even prior to the pandemic’s outbreak, certain retailers experienced financial difficulties and filed for Chapter 11 bankruptcy. The pandemic only exacerbated retailers’ difficulties by effectively shuttering stores nationwide, thus halting certain retailers’ “going out...
Straightening Their Tenants' Ties: Retail Property Owners Are Buying Distressed Retailers Out of Bankruptcy
Since the early days of the COVID-19 crisis in the U.S., it has been a recurring theme to turn on the news and see that yet another big-name retailer is rumored to be on the brink of filing, or has already filed, for bankruptcy. Many well-known brands many of...
Court Partially Excuses Tenant’s Rent Obligations During COVID Shutdown
In the social and economic fallout from COVID, businesses are assessing how best to address their commercial relationships, especially where potentially insurmountable barriers to performance loom large. One clause that concerns performance impossibility has gained increasing recognition in this crisis. “Force majeure” contract clauses long have existed in contracts. Largely...
“Retail Apocalypse: The End – Or A New Beginning?”
The last several years have been treacherous for the retail sector. Changing shopping patterns and shifting demographics have led some commentators to declare that the (retail) apocalypse is upon us . And while we have seen numerous mega-bankruptcies, including Sears, Toys ‘R Us, Borders, Payless Shoes and Radio Shack...
When the Retail Anchor Becomes the Risk… or Opportunity?
Big box stores have recently been large contributors to the “retail apocalypse” facing owners of shopping centers with broad swaths of empty space. Some landlords are discovering that they need to take a more active role at the helm of their centers and find new ways to attract customers...
Not Just Fun and Games: The Demise of Toys "R" Us, Inc. and the Changing Face of Retail
This year marks the first Christmas in modern memory without Toys "R" Us, Inc. The loss of the international toy seller leaves billions of dollars in toy sales up for grabs, and its slow and steady decline may serve as a catalyst for retailers to evolve and stay relevant...
A Trademark Licensee’s Rights after its Licensor’s Bankruptcy May Vary Depending on the Venue of the Bankruptcy Case
In this tumultuous retail climate , a string of recent conflicting court decisions remind retailers that the potential impact of a licensor bankruptcy on a trademark licensee’s rights may vary dramatically depending on the location of the licensor’s bankruptcy proceedings. In some jurisdictions a licensee may be entitled to...
The New Dawn of Retail: Apocalypse or Evolution?
Major retailers that once reigned supreme with brick and mortar stores now face unparalleled challenges. Historically, major retailers dominated the retail industry by opening stores in the most desirable locations and offering fetching merchandise at a great value. But, numerous trends – including a dramatic shift in shopping habits...
Bankruptcy Lease Auctions – Landlords Can Play Too
Toys “R” Us filed for bankruptcy in September 2017, with hopes that a strong holiday season would facilitate a successful reorganization. After holiday sales proved to be far less lucrative than the company and its professionals had hoped, the announcement was recently made that the company would commence store...
Off-Price Retail Therapy for Landlords: New Opportunity in the Age of Millennials
On March 2nd, after much media speculation, Sports Authority commenced a case under chapter 11 of the United States Bankruptcy Code. In its initial bankruptcy filings, the company’s CFO announced that it will close up to 200 of its 464 stores over the course of the bankruptcy case. Sports...