For Fashion Retailers, Chapter 11 Is in Vogue
In this issue of his Bankruptcy Update, Edward E. Neiger focuses on recent restructurings in the retail sector, including iconic luxury department store Barneys New York, fast-fashion juggernaut Forever 21 and specialty retailer Destination Maternity.
December 30, 2019 at 12:00 PM
6 minute read
The original version of this story was published on New York Law Journal
This issue of the Bankruptcy Update focuses on recent restructurings in the retail sector, including iconic luxury department store Barneys New York, fast-fashion juggernaut Forever 21 and specialty retailer Destination Maternity.
Barneys New York
On Aug. 6, 2019, luxury retailer Barneys New York and affiliated debtors filed petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, in Barneys New York (Bankr. S.D.N.Y. Case No. 19-36300).
Following a common theme in the retail industry, Barneys attributed its filing to online competition and drastic rent increases that resulted in a liquidity crisis. Initially founded as a men's retailer in 1923, the company grew to sell men's and women's clothing, shoes, accessories, cosmetics, fragrances and home décor at locations in New York, Los Angeles, San Francisco, Boston, Chicago, Las Vegas and Seattle, as well as various discount warehouse locations and concept stores.
The debtors commenced their search for new financing or a buyer in June 2019 but were ultimately forced to file their Chapter 11 cases without a stalking horse commitment in place. To fund operations under Chapter 11, the company sought approval of a $217 million financing package to be funded by Brigade Capital Management and an affiliate of B. Riley Financial, with a substantial portion of the financing slated to roll-up prepetition secured debt held by the debtor-in-possession lenders. The financing arrangement drew the ire of the official committee of unsecured creditors for its limited new money component and onerous lending terms but was nevertheless approved by the bankruptcy court on a final basis Sept. 4, 2019.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Law Firms Mentioned
Trending Stories
- 1'I'm Staying Everything': Texas Bankruptcy Judge Halts Talc Trials Against J&J
- 2What We Know About the Kentucky Judge Killed in His Chambers
- 3Judge Blasts Authors' Lawyers in Key AI Suit, Says Case Doomed Without Upgraded Team
- 4Federal Judge Won't Stop Title IX Investigation Into Former GMU Law Professor
- 5Ex-Prosecutor and Judge Fatally Shot During Attempted Arrest on Federal Corruption Charges
Who Got The Work
Charles A. Weiss of Holland & Knight has entered an appearance for Rafael Badalov in a pending trademark infringement lawsuit. The suit, filed July 26 in New York Eastern District Court by Lee Law on behalf of Otter Products LLC, accuses the defendant of selling counterfeit phone cases and accessories bearing the plaintiff's 'OtterBox' trademark. The case, assigned to U.S. District Judge Nina R. Morrison, is 1:24-cv-05214, Otter Products, LLC v. Badalov et al.
Who Got The Work
Gibson, Dunn & Crutcher partners Benjamin Hershkowitz, Richard W. Mark and Casey J. McCracken and R. Scott Johnson, Thomas M. Patton and Cara S. Donels have entered appearances for Berkshire Hathaway Energy Co. and MidAmerican Energy Co., respectively, in a pending patent infringement lawsuit. The case, filed July 17 in Iowa Southern District Court by Nyemaster Goode PC and Caldwell Cassady & Curry on behalf of Midwest Energy Emissions Corp., asserts six patents related to sorbents for the oxidation and removal of mercury. The case, assigned to U.S. District Judge Stephen H. Locher, is 4:24-cv-00243, Midwest Energy Emissions Corp. v. Berkshire Hathaway Energy Company et al.
Who Got The Work
Michael J. Hickey and Michael L. Jente of Lewis Rice LLC have stepped in to represent Tidal Wave Management in a pending trademark infringement lawsuit. The case, filed July 18 in Missouri Western District Court by Husch Blackwell on behalf of Waterway Gas & Wash Co., accuses the defendant of using a mark that's confusingly similar to the plaintiff's 'Clean Car Club' mark. The case, assigned to U.S. District Judge Fernando J. Gaitan Jr., is 4:24-cv-00471, Waterway Gas & Wash Company v. Tidal Wave Management LLC.
Who Got The Work
Wachtell, Lipton, Rosen & Katz partners Lauren M. Kofke and William Savitt have stepped in to represent CVS Health and and its top officials in a pending shareholder derivative lawsuit. The complaint, filed Aug. 30 in New York Southern District Court by the Brown Law Firm on behalf of Chaya Sara Kaufmann, accuses the defendants of failing to disclose that they used misleading forecasts to set premium plans which overstated the profitability of the company's health care benefits segment. The case, assigned to U.S. District Judge Margaret M. Garnett, is 1:24-cv-06595, Kaufmann v. Lynch et al.
Who Got The Work
Robert L. Wallan from Pillsbury Winthrop Shaw Pittman has entered an appearance for Findlay Management Group in a pending complaint for declaratory judgment. The complaint, filed on Aug. 8 in Nevada District Court by Gordon Rees Scully Mansukhani and Skarzynski Marick & Black on behalf of Houston Casualty Co., seeks to declare that no insurance policy exists between Houston Casualty and Findlay due to there not being an adequate form of delivery and claims that if delivery was substantiated it is rescinded based on material omissions and misrepresentations. The case, assigned to U.S. District Judge Gloria M. Navarro, is 2:24-cv-01459, Houston Casualty Company v. Findlay Management Group.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250