Bankrupt mall retailer shares plan to save some stores
While all stores are entering or have already started going-out-of-business sales, some hope remains,
When a retailer goes bankrupt, it causes a problem for its landlord.
In many cases a chain will be behind on its rent with no plan to pay that money. A Chapter 11 bankruptcy can forestall closing the store by giving it time to conduct a going-out-of-business sale.
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The landlord might see some money from that sale but could also sit behind vendors, employees and some lenders on the repayment list. Once a store closes, it will generally need remodeling before another tenant can move in.
In addition, while all this is happening, the mall has some of its real estate tied up in a dying or dead store. That's not a big deal when it's one store, but when several mall retailers go out of business in the same time frame. the damage can escalate.
