Skip Repeated Content

Los Angeles Partner Sharon Weiss was quoted March 31 by WWD (Women's Wear Daily) concerning the difficulty of seeking bankruptcy protection as the economy flounders under the COVID-19 pandemic. Retailers usually seek bankruptcy protection to trigger an automatic stay of creditor enforcement actions. But bankruptcy relief also requires financial resources and a plan forward, which might be difficult to formulate during a global pandemic. “Everything in a restructuring case comes down to valuation,” said Weiss, who advises retail industry clients on bankruptcy issues. “The difficulty now is in being able to value, or estimate sources of revenue.”

This document provides a general summary and is for information/educational purposes only. It is not intended to be comprehensive, nor does it constitute legal advice. Specific legal advice should always be sought before taking or refraining from taking any action.