Retail and Restaurant Bankruptcies: Specialized Issues for Debtors, Landlords, and Vendors

Finding Financing, Solving Inventory Issues, Franchise Agreements, Using Subchapter V

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Wednesday, December 14, 2022 (in 4 days)

1:00pm-2:30pm EST, 10:00am-11:30am PST

or call 1-800-926-7926

This CLE course will provide counsel with the tools to address the specialized issues that arise during retail and restaurant bankruptcies. The panel will review challenges with financing, dealing with overstock and inventory issues, leases and other executory contracts, franchise agreements, vendor rights, gift cards, and other issues unique to retail and restaurant insolvencies. The panel will also address using Subchapter V and avoiding "Chapter 22."

Description

Retail and restaurant bankruptcies present unique issues that often demand novel solutions. Many decisions must be made more quickly than in other cases, such as the assumption or rejection of leases and how to deal with rejection damages. Lenders want plans to be filed promptly and often threaten liquidation if they are not forthcoming despite the debtor's options under Section 365(d)(3).

Bankruptcy offers options to resolve franchise agreement assignment and intellectual property issues, and monetizing these assets can be critical to preserving value for creditors.

If the debtor intends to continue operating, it must deal with its pre-petition vendors post-petition and address whether to honor gift cards, loyalty program points, and other customer incentives post-petition. Retailers must factor in consignment arrangements and Section 503(b)(9) claims, while restaurants must grapple with the Perishable Agricultural Commodities (PACA) and Packers and Stockyards (PSA) Acts.

Listen as our authoritative panel discusses how to best guide retail or restaurant clients through a bankruptcy proceeding, all while deploying every available tool to maximize the value of inventory and assets, protect the client's equity, and preserve long-term customer goodwill.

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Outline

  1. The upswing in retail and restaurant bankruptcies
  2. The Subchapter V option
  3. Assumption and rejection of leases: treatment of rent pre- and post-petition
  4. Customer incentives post-petition: gift cards and loyalty programs
  5. Vendors: consignment, stay relief, and other issues
  6. Inventory and going out of business sales
  7. Future trends and miscellaneous issues

Benefits

The panel will review these and other key issues:

  • When is Subchapter V an option?
  • What is the procedure and timing for assuming or rejecting leases in bankruptcy?
  • What steps may vendors take to protect their rights to consigned goods?
  • What are some constraints on going-out-of-business sales, and how are they resolved in bankruptcy?
  • What novel approaches are being developed to deal with the pandemic?

Faculty

Sarah Crow
Sarah Crow
General Counsel
Yum! Brands

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 |  Read More
Ratto, Betsy
Betsy Ratto

Senior Vice President
Hilco Merchant Resources

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 |  Read More
Stratton, Teri
Teri Stratton

Senior Managing Director
Hilco Corporate Finance

Ms. Stratton has significant experience providing debt advisory, equity private placements, capital markets, mergers...  |  Read More

Vulpio, Amy
Amy E. Vulpio

Partner
White and Williams

Ms. Vulpio focuses her practice on creditor and debtor representation, bankruptcy appellate work and bankruptcy-related...  |  Read More

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