Physical retail was challenged even before COVID-19 came along and locked everything down, with bankruptcy filings at fairly regular intervals over the last few years from well-established companies and plenty of pain to go around. Now the process is accelerating. Companies that had been on the brink before are preparing for filings to address massive debt loads and bank covenants, revenue that vanished overnight and high fixed costs that haven’t gone anywhere.
What should the growing number of retailers in this position be considering, and what kinds of restructuring plans should they set up in order to emerge in a better position? Attorney Thomas Wolford, a partner with Neal, Gerber & Eisenberg with years of experience in its financial restructuring and bankruptcy practice, gives us an insider’s look at what goes on from filing through re-emergence.