Tag Archives: commercial leases
Using Chapter 11 to Reshape Unworkable Agreements
There are many reasons why a once-thriving business might end up in financial straits. One of these may be that longstanding contracts that once made good sense have become burdensome as financial conditions have changed. Above-market lease payments, expensive supplier contracts or unfavorable service agreements can drain cash flow and threaten a company’s solvency. When […]
How Retailers in Chapter 11 Can Exit or Assign Costly Store Leases
Commercial leases are often among the most pressing financial obligations for retailers facing economic distress. Leases can run from three to 10 years, making them a significant financial liability when a sales location no longer generates enough revenue to cover rent and operating costs. Percentage rent clauses and co-tenancy requirements can further keep retailers tied […]
