When a retailer files a Chapter 11 bankruptcy case, its suppliers face the critical decision of whether to continue shipping goods to the retail debtor post-petition. Cutting off all further shipments would limit any further loss but would also guarantee that the supplier had little to no chance of...
Throughout a retail restructuring, from the prefiling period through the winddown of the proceedings, debtors and their professionals face unique challenges that arise from the nature of retail operations and the resulting direct impact on liquidity management. Although not an exhaustive recitation...
With the surge in retailers filing for Chapter 11 over the last several years, precedents abound for the debtor-in-possession (DIP) packages put together to finance the bankruptcy cases of retail debtors. Certain patterns and common practices have begun to emerge. A review of large retail Chapter...
Last year saw over 9,300 retail store closures—more than any other year on record and a 60% increase over the roughly 5,800 closures in 2018. Whether one believes the industry is in the midst of the “retail apocalypse” or that what’s happening is merely a matter of survival of the fittest, it is a...
These are unprecedented times. In a matter of days, the coronavirus pandemic virtually shut down American society, and with it, the wheels of industry came to a standstill. There is not one industry that has not been hit with the repercussions of this virus. In fact, “hit” may be an understatement...
Unsecured creditors in bankruptcy typically are barred from receiving postpetition interest on their prepetition claims against a debtor. That much is certain. But several courts recently have faced more challenging questions, such as whether unsecured creditors that are purported to be unimpaired...
With economists predicting an economic slowdown in 2020 and a recession perhaps as soon as 2021, how will valuations and EBITDA (earnings before interest, taxes, depreciation, and amortization) multiples fare? While it is difficult to get meaningful data specifically on distressed sale transactions...
As the trade war between United States and China persists and competition abroad continues to grow, U.S.-based manufacturers have faced diminished profits and uncertain financial futures. In fact, Deloitte projects the U.S. manufacturing sector’s GDP growth levels for 2019 trended downward,...
The auto industry moves the needle in many different geographic markets, which often trickles down to other commercial industries. Stress cracks at the original equipment manufacturer (OEM) level often create shock waves down the supply chain, which increase risk factors for tier one, two, and...
E-commerce has become a disruptive force in both the retail and distribution sectors. It has significantly impacted consumer buying habits as well as distribution networks and technology platforms. For the consumer, most of these disruptions have been positive. E-commerce was made possible in 1991...
