Media Coverage
Source: Texas Lawyer
Media Coverage
05.18.20
According to Texas Lawyer, COVID-19 has pummeled retail businesses, forcing many to shut their doors for the past two months by government order. As a result, many have suffered devastating losses and face the potential of filing bankruptcy, if they haven’t done so already.
“The retail industry is now mostly in free fall and the only question is the size of the crater it will make,” said Hugh Ray III, a Pillsbury Insolvency and Restructuring partner in Houston.
“The bankruptcies are designed to save as much as possible and cushion the impact on employees, vendors and stakeholders,” Ray said. “But there will be great pain and loss no matter what is done.”
"Attorneys can try and find a seat at the table to help their client negotiate, but if a company announces that it is shutting doors and closing, there may not be much to negotiate about,” Ray explained.
“With the very notable exception of Neiman Marcus, most of these cases could turn into brutal trench warfare pitting lenders against landlords and both of those against suppliers,” Ray said. “In the Nieman Marcus case, the key creditors were able to get together and agree on the best course of action before the bankruptcy. That will not be the usual outcome.”