More retailers join the ranks of bankruptcy

A newly released Moody’s Investors Service report suggests that many more retailers are expected to close within the next year or year-and-a-half, and 17 Pennsylvania stores are actually on the verge of bankruptcy and could close their doors permanently.

“Overall, 22 national retailers had debt ratings of Caa or lower — higher than the number of bankrupt-leaning retailers during the Great Recession of 2008-2009,” an article in the Radnor Patch reads. “Debt rated at Caa or below is the lowest rank on Moody’s credit rating spectrum. Seventeen of those have Pennsylvania locations.”

Read more: Bankruptcy Attorney in Pennsylvania

Charlie O’Shea, who is Moody’s lead retail analyst, told the Radnor Patch that while the majority of retailers remain healthy for the most part, a select group of retailers continue to struggle to keep their doors open. O’Shea suggests in the article that the stores that are struggling are mainly department stores or specialty retailers. He says they believe the distressed ranks will keep growing, fueled in part by distinct vulnerabilities.

Here is the list of retailers with stores in Pennsylvania that are on the verge of bankruptcy:

• Bon-Ton
• Charlotte Russe
• Charming Charlie
• Claire’s Stores
• Cole Haan
• David’s Bridal
• Eddie Bauer
• Gymboree
• J. Crew
• Kmart
• Neiman Marcus
• Nine West
• Savers
• Sears
• Totes Isotoner
• Tops
• True Religion Apparel

A report, “US Retail and Apparel: B2/B3 Issuers Gain Spotlight As Distressed Retail and Apparel Ranks Grow,” provides the public an overview of factors that impact companies at these rating levels. Click here to obtain the full report.

“Some of these retailers, such as Sears and Kmart, have already announced store closings in Pennsylvania,” the article reads. “Earlier this year, Sears announced it would close 150 Kmart and Sears stores by the spring, part of a difficult but necessary step as we take actions to strengthen the company’s operations and fund its transformation.”

 

The post More retailers join the ranks of bankruptcy appeared first on Young, Marr & Associates.

from Young, Marr & Associates http://ift.tt/2sp1SJS
via IFTTT

Joe’s Crab Shack, Brick House Tavern file for Chapter 11

The owner of Joe’s Crab Shack filed for Chapter 11 early last week. The company released a statement to the media about the filing recently.

“The chain’s owner, Ignite Restaurant Inc. — which also owns the Brick House Tavern + Tap chain — plans to sell the company for at least $50 million to a private equity firm, according to a report by CNBC.com,” an article on NJ.com reads.

Read more: Bankruptcy Attorney, Hamilton New Jersey

According to the article, Ignite was trying to sell the business in 2016, but sales continued to decline this year and potential buyers eventually pulled their proposals. This is what reportedly led the company to consider filing Chapter 11 bankruptcy.

“Today’s sale agreement represents the culmination of a long and thorough process, and is an important step in positioning Joe’s and Brick House for future growth and success,” acting CEO Jonathan Tibus said in the statement.

NJ.com reports that Ignite has filed a proposal to sell its assets to the private equity firm, Kelly Investment Group. Ignite Restaurant Group said the fate of the restaurants at this time is unclear, but the company many seek bankruptcy protection.

“Michael Kelly, CEO of KRG Acquisitions Co. — an affiliate of Kelly Investment Group — said in a statement that he is excited about acquiring a well-known national brand such as Joe’s Crab Shack and Brick House Tavern + Tap,” the article reads. “Ignite said in its statement that both Joe’s Crab Shack and Brick House Tavern + Tap restaurants will remain open and operating as usual and Ignite customers can expect to continue to enjoy the same great food and service that they have come to expect from our brands.”

Five restaurants are listed on the Joe’s Crab Shack website including Clifton, Deptford, Eatontown, Lawrenceville and South Plainfield. Brick House lists locations in South Plainfield, Princeton and Neptune.

The post Joe’s Crab Shack, Brick House Tavern file for Chapter 11 appeared first on Young, Marr & Associates.

from Young, Marr & Associates http://ift.tt/2sYYMLz
via IFTTT

Pittsburgh Athletic Association files for Chapter 11 bankruptcy

An iconic Pittsburgh organization filed for Chapter 11 bankruptcy protection on Tuesday. The Pittsburgh Athletic Association in Oakland opened its doors about 100 years ago and has been a gathering place for the business and cultural elite ever since.

“In a filing in U.S. Bankruptcy Court for the Western District of Pennsylvania, the organization listed assets and liabilities estimated between $1 million and $10 million,” an article in the Post Gazette reads.

The social club was founded in 1908 and thrived for many years, but has since sunk deep into debt amid changing lifestyles, declining membership and dwindling revenue.

“Operations at the stately Fifth Avenue building have been shut down since mid-April when the water was cut off because of $168,000 in bills owed to the Pittsburgh Water & Sewer Authority,” the article reads. “Association President James Sheehan said Tuesday that despite the club’s mounting financial troubles, it hoped to form a plan of reorganization and reopen.

Sheehan told the media the plan now is to reach out to local and national real estate developers in hopes of coming up with proposals so the organization can remain in the building, but likely with a smaller footprint. They also hope to redevelop the building, Sheehan said.

“The association has obtained $750,000 in financing from a subsidiary of JDI Realty in suburban Cleveland, Ohio, to fund operations during the reorganization, according to the club’s bankruptcy attorney, Jordan Blask of Tucker Arensberg, Downtown,” the article reads. “He said there was no official target date for reopening, but the club hoped to be back in business ‘before year-end, if not sooner.’”

Many events that were scheduled for the next few months are in the process of being canceled, including weddings. Sheehan said they wanted to go ahead and cancel the events early enough for people to make alternate plans.

“Employees of the club who are owed back pay will be treated according to the bankruptcy code,” Blask said. “Hopefully, the [$750,000 in] funding will pay some of those claims and pay employees going forward when the PAA reopens, he said.”

The club’s debts reportedly include hundreds of thousands of dollars in overdue state and federal payroll taxes, and bills from utility companies, vendors, and contractors.

The post Pittsburgh Athletic Association files for Chapter 11 bankruptcy appeared first on Young, Marr & Associates.

from Young, Marr & Associates http://ift.tt/2sisCZi
via IFTTT

Mountain Creek seeking Chapter 11

Mountain Creek ski resort and waterpark is amongst a long list of companies and organizations that have recently announced they are seeking Chapter 11 protection under the U.S. bankruptcy code.

“That provision, if granted, would enable Mountain Creek Management LLC to restructure its debt while maintaining daily operations, including the opening of Mountain Creek Waterpark next month,” according to an article on NJ.com.

Read more: Bankruptcy Attorney, Hamilton, NJ

Mountain Creek is the largest ski area in New Jersey, has the world’s tallest and only double-looping waterpark slide, and offers guests the East Coast trails of the Mountain Creek Bike Park. According to the Mountain Creek website, there’s no shortage of adventures to leave you with stories that will last a lifetime. With a range of accommodations from mountaintop cabins to poolside condos and townhomes, there are also plenty of options to relax.

“Here at Mountain Creek we pride ourselves on providing a warm, welcoming resort experience for the whole family,” the website reads. “The pioneering spirit that began almost 50 years ago lives on today through our independent ownership and vibrant staff. We look forward to sharing our playground with you.”

The company’s CEO, Jeff Koffman, recently issued a statement in regards to the bankruptcy filing. In the statement, Koffman attributed the filing to “legacy debt we inherited from the property’s former owners.”

“Of the $26.2 million listed in the filing for the Vernon Township Municipal Utilities Authority, the biggest creditor, more than $20 million is for potential future use of the sewer system,” the article reads.

Koffman noted that they remain committed to seeing Mountain Creek develop to its full potential, which he said would include new hotels, new outdoor attractions and expanded residential homes.

“Our vision to create a world class, four-season resort here in New Jersey is still our main objective and this move will put us in the best position to achieve that,” Koffman said.

The resort has also struggled with challenging weather the past two winters. Mountain Creek said the bankruptcy filing is not expected to result in any job losses.

The post Mountain Creek seeking Chapter 11 appeared first on Young, Marr & Associates.

from Young, Marr & Associates http://ift.tt/2s3NipE
via IFTTT

Mall owned by Pennsylvania Real Estate Investment Trust facing another bankruptcy

Another mainstay at the Cherry Hill Mall, which is owned by Pennsylvania Real Estate Investment Trust, has filed for Chapter 11 bankruptcy protection. This time, it’s a family-owned restaurant that’s been at the mall for 20 years.

“The Bistro at Cherry Hill, which serves Italian and American dishes, owes roughly $470,000 in unpaid taxes to New Jersey, plus another $40,000 to the IRS for wage and payroll taxes, and just over $4,000 to authorities in Pennsylvania, according to the Courier Post.

Read more: Bankruptcy Lawyers, Philadelphia Pennsylvania

The restaurant released a statement after it went to U.S. Bankruptcy Court in Camden, saying it “plans to successfully stay in business for at least another 20 years.”

“The restaurant was briefly shutdown in late March, apparently following a visit from state tax officials, an article by Philadelphia Business Journals reads.

This isn’t the first time the South Jersey mall has seen struggles. Earlier this year, Cherry Hill Mall owner, Pennsylvania Real Estate Investment Trust, announced retailer Uniqlo would be closing its store.

Business Insider released an article earlier this year stating that analysts predicted that 2017 would be a rough year for retail stores, especially those with a high proportion of locations in malls.

“Many chains that are closing stores are also facing a very real threat of bankruptcy,” the article reads.

Eight retailers that are disappearing across the U.S. include, but are not limited to the following:

• The Limited : Shut down all 250 stores in January.
• Macy’s: Shut down 68 stores and laid off nearly 4,000 employees, beginning in early 2017. Ultimately, the retailer plans to shut down about 100 stores, or 15% of its store base, over the next couple of years.
• Sears: Sears plans to shut down 108 Kmart stores and 42 Sears stores by April.
• Wet Seal: The struggling teen retailer is closing all 171 of its stores, thecompany announced in late January. 
• BCBG: The retailer is shutting down 120 locations, primarily in the US, the Star Tribune reported in early February.Currently, BCBG has 570 locations worldwide, and 175 in the US.
• Bebe: The retailer announced in early February that itplanned to close up to 25 locations in 2017.
• Payless: The discount shoe retailer could close as many as 1,000 stores as part of a debt restructuring plan, sources told Bloomberg.Currently, Payless has about 4,400 locations worldwide, including 3,600 in North America.
• American Apparel: The future of American Apparel’s stores remains unknown; following the retailer’s acquisition by Gildan Activewear Inc. Gildan did not acquire the chain’s 110 locations when it bought the American Apparel brand. If American Apparel doesn’t find a buyer, then these stores will likely be shut down.

The post Mall owned by Pennsylvania Real Estate Investment Trust facing another bankruptcy appeared first on Young, Marr & Associates.

from Young, Marr & Associates http://ift.tt/2rMAeps
via IFTTT