In this episode of Retail Retold, host Chris Ressa speaks with bankruptcy counsel Scott Fleischer , partner at Barclay Damon, about the intricacies of retail bankruptcies, focusing on the Chuck E. Cheese case during the COVID-19 pandemic. They discuss the unique challenges faced by retailers, the role of landlords, and the impact of lender support in bankruptcy outcomes. The conversation also touches on the contrasting experiences of Chuck E. Cheese and Container Store in their respective bankruptcy proceedings, highlighting lessons learned and the evolving landscape of retail bankruptcy.

Takeaways

• The Chuck E. Cheese bankruptcy case was notable for its timing during COVID-19.
• A unique provision in the bankruptcy code allowed for rent delays.
• Landlords were able to secure insurance requirements during bankruptcy.
• The judge's decision favored landlords in the Chuck E. Cheese case.
• Lender support is crucial for a successful reorganization in bankruptcy.
• Container Store's bankruptcy was a pre-packaged restructuring.
• Retail bankruptcies can present opportunities for landlords.
• Misconceptions exist about the causes of retail bankruptcies.
• Bankruptcies can lead to significant changes in retail real estate.

Chapters

00:00 Introduction to Bankruptcy and Retail

01:36The Chuck E. Cheese Bankruptcy Case

05:14Navigating Rent Delays and Abatement

10:09The Role of Lenders in Bankruptcy

12:39Comparing Chuck E. Cheese and Container Store

18:50Lessons Learned from Retail Bankruptcies