Recent Retailer-Debtors  Cite Supply Chain Crisis  as Trigger for Bankruptcy Filings
In the aftermath of the decadelong “retail apocalypse” and onslaught of retail bankruptcy filings, 2022 saw a significant drop in retail Chapter 11 bankruptcy filings. As of November 2022, only seven large retailers had filed for bankruptcy protection 1 —a steep drop from the 52 retail bankruptcies...
Good Faith, Not Good Intentions, Required for Chapter 11 in the 3rd Circuit
On January 30, 2023, the 3rd U.S. Circuit Court of Appeals issued a precedential opinion reversing a decision by the U.S. Bankruptcy Court for the District of New Jersey and dismissing the Chapter 11 case filed by LTL Management LLC. LTL is the “Bad Co” Johnson & Johnson entity formed through a...
Stablecoins Show Great Promise, But Search for the ’Holy Grail’ Continues
The implosion and ensuing bankruptcy of hedge fund Three Arrows Capital (3AC) in mid-2022 sent shockwaves through the crypto industry, causing severe price volatility and leaving industry prime brokers and institutional lenders with gaping holes in their balance sheets. Indeed, the recent...
Bankruptcy Fiduciaries Must Chart New Territory in Managing Cryptocurrency
As cryptocurrency has entered the U.S. economy as a widely held and circulated asset, its presence within the bankruptcy process is quickly evolving. For bankruptcy fiduciaries, cryptocurrency poses unprecedented legal and case administration challenges. One of the most pressing issues for...
Bitcoin Miners Are Being Squeezed by Higher Costs, Lower Revenue
The dramatic rise in bitcoin prices from late 2020 through 2021 prompted significant growth in the bitcoin mining industry, with the number of public bitcoin mining companies growing from a handful at the beginning of 2021 to over 20 by the first quarter of 2022. During that time, bitcoin mining...
Keys to Successful Crypto Company Turnarounds
Increased volatility, uncertainty, and the early signs of an uptick in restructuring activity were the headlines that closed out 2022. These characteristics have persisted into early 2023 and, while they apply to many industries, no industry has experienced as dramatic a change as the crypto...
Recent Appellate Decisions Spotlight Split on Postpetition Interest for Unimpaired Creditors
A recent wave of key decisions has placed a spotlight on an issue that has divided courts for years. That is, whether unimpaired creditors are entitled to postpetition interest in solvent debtor cases and if so, the appropriate rate of interest that should apply. Since these issues were last...
The Big Reset: Simplification of End-to-End Retail in Response to Increasing Inflation
Many retail organisations have gone through a significantly turbulent period, working hard to keep the lights on. For the last 12 to 18 months, they have been coping with supply chain issues, pricing optimisation after-effects, and systems producing information that still does not help them with...
Examining Recent Cycles for Clues to What Lies Ahead for Retailers
The retail sector continues to experience rapid innovation and disruption, reflecting an ongoing transformation of consumer behavior and preferences that affects how and for what people shop. Pressure is continuing to mount for retailers heading into 2023—liquidity is falling as inventory and...
Customer Acquisition and Connection in the Evolving Retail Environment
According to the U.S. Census Bureau, e-commerce sales (internet shopping and mail order) made up roughly 5.4% of retail sales in October 2000, excluding autos and gas stations. 1 That figure has risen steadily and is now close to 21% ( Figure 1 ). Since the dot-com bubble burst in 2000 and...