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“Retailers and Chapter 11,” Shopping Center Business

April 29, 2016
Daniel F. Blanks

In an article published in the April edition of Shopping Center Business, Jacksonville partner Daniel F. Blanks provides insight on retailers’ use of the bankruptcy code as an exit strategy or path to restructure their company. While a slew of companies such as Circuit City and Blockbuster all filed for Chapter 11 in an attempt at reorganizing their companies, each of them failed to reorganize and instead liquidated. In the past, retailers such as Kmart, Macy’s, and Montgomery Ward, filed for bankruptcy protection, reorganized and emerged from Chapter 11 as restructured companies. Mr. Blanks provides some background on the history of the bankruptcy code and changes made to the code in 2005 that impacted a Chapter 11 retailer’s ability to reorganize. Changes to the treatment of leases, the differences in the retailer creditor pool and the fact that retailers’ reputations can be significantly harmed by a Chapter 11 filing are some of the factors impacting strategy for landlords and retailers. For the full article, please click here.