Stretched and stressed by the Covid-19 pandemic, several fashion retailers have turned to Chapter 11 bankruptcy to address their financial woes. In Part 1, I discussed company sales under section 363 of the Bankruptcy Code, a mall landlord stepping in to rescue distressed tenants, and “Chapter 22" filings. Today, I will focus on three recent trends in Chapter 11 fashion retailer liquidations and reorganizations.
In the past year, some well-known clothing retailers used Chapter 11 to shutter all of their physical locations, but sold their intellectual property, allowing brand names to survive online. Other fashion companies have managed ...