Retail bankruptcies subside, but will return with a vengeance in Q1 2021
Retailers whose businesses have been devastated by the pandemic but who have enough cash on hand to remain in operation through the holidays will do so. But bankruptcy lawyers expect the pace of their Chapter 11 filings on behalf of store chains to quicken come January.

“I don’t think we’d have seen this many bankruptcy filings if COVID-19 didn’t happen, but many of them happened at companies like J.C. Penney that people have been expecting to go under for years,” said attorney Glenn Rose of the Nashville-based firm Bass, Berry & Simms.

RSK: A lot of this is due to landlords deferring rent or lowering rent for now. Eventually the retailer will not be able to push it down the road and will have to declare bankruptcy. Normally better to work something out between landlord, tenant and lender.

- - Volume: 8 - WEEK: 36 Date: 9/1/2020 8:28:52 AM -