The Future of Retail Bankruptcies
October 18, 2017
Otterbourg partner and head of its bankruptcy practice group, Melanie Cyganowski appeared on the panel "The Future of Retail Bankruptcies" at the American Bankruptcy Institute's "View from the Bench: 2017" in Washington, D.C. on October 17, 2017.
An unprecedented number of retailers have filed for bankruptcy so far this year, including such names as The Limited, rue21, Payless, Gymboree, hhGregg, and Gander Mountain. The panel discussed whether the strategy has changed from § 363 sales and liquidations to pre-2005 reorganizations, whether the sheer number of retail bankruptcies signals the end of the mall and how the retail bankruptcies will impact mall owners and their tenants. Questions of whether brick-and-mortar stores can stem the tide of bankruptcies and whether the Aeropostale paradigm of landlord investment will become more common were considered. The panel considered the effect of the downturn in retail on factors and other lenders and recoveries for the unsecured creditors.
In a special podcast with Sam Gerdano, Executive Director of the American Bankruptcy Institute, Ms. Cyganowski discussed the issues on retail bankruptcies and some of the insights from the panel. The podcast may be seen here.
The other panelists included the Hon.Clifton R. Jessup Jr., Hon. Sean H. Lane, Hon. Wendelin I. Lipp and David L. Pollack.
