/>iThis morning, Sports Authority, Inc. (“Sports Authority”) filed for Chapter 11 bankruptcy protection in the United States District of Delaware, Bankruptcy Court, case # 16-10529. The retailer with more than 450 stores is expected to close about 140 locations within the bankruptcy proceeding. Sports Authority was once the biggest sporting-goods chain in the U.S., but over the past few years has had difficulty competing with Dick’s Sporting Goods Inc., Lululemon Athletica Inc., Gap Inc.’s Athleta, and Amazon.com, Inc.
Landlords Beware
If you are a landlord, you will want to know:
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Will they remain a tenant?;
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When will rent be paid?;
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Are there pre-petition claims that are owed?;
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Is the Debtor in default of pre-petition non-monetary obligations?; and,
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What other damages are owed (both pre- and post-petition)?
Trade Creditor Questions
Trade creditors, including suppliers, should also be asking important questions, such as:
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Have you been paid on time and does a reclamation claim (right to take back goods shipped, unpaid within 45 days) exist?;
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Can an administrative claim be asserted?; and,
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Should a proof of claim be filed, and if so, how?
If you are a trade creditor with reclamation claims, then it is vital to assert your rights now.
