Reporting from Bloomberg indicates that Ascena Retail Group, the parent company of clothing brand Ann Taylor, has entered discussions with lenders concerning a potential bankruptcy filing. Ascena reportedly wishes to pursue a partial asset sale in bankruptcy, whereby it would sell certain of its brands to reduce its existing debt, while retaining several of its key brands around which it would reorganize. [Bloomberg, June 5, 2020]
Reporting from Reuters show a 48% year-over-year rise in commercial bankruptcy filings, which it attributes in large part to the economic impact of the COVID-19 pandemic. [Reuters; June 4, 2020]
Judge Vincent Papalia of the United States Bankruptcy Court for the District of New Jersey recently extended his “mothball” order in the bankruptcy case of Modell’s Sporting Goods, Inc., which has effectively suspended activity in the Debtors’ bankruptcy cases in response to the COVID-19 pandemic since it was initially entered on March 27, 2020. See our earlier post on the initial “mothball” order for more information. [In re Modell’s Sporting Goods, Inc.; June 4, 2020]
CBL & Associates Properties Inc. reportedly failed to make an $11.8 million interest payment to bondholders, reports the Wall Street Journal. CBL is reportedly the “first major retail landlord during the coronavirus pandemic to take this step toward a bond default.” As a result of the missed bond payments, CBL has now entered a 30-day grace period, which it will reportedly use to negotiate with its lenders. [WSJ; June 2, 2020]