The Proliferation Of Retail Bankruptcies Will Create Havoc For Upcoming Mall Refinancing

Mall Landlords, Their Lenders, And Others Beware – The Proliferation Of Retail Bankruptcies Will Create Havoc For Upcoming Mall Refinancing

By: Charles M. Tatelbaum – Tripp Scott, PA

Much has been recently written about the proliferation of retail bankruptcy filings for such chains as Aeropostale, Sports Authority, Fairway Foods, Radio Shack and others.  There has also been substantial prognostication that the recent bankruptcy filings in the retail sector are just the tip of the preverbal iceberg of what is yet to come. What has not been fully considered is the domino effect of these cases on the mall landlords, the landlords’ lenders and other retailers in the mall.

The domino effect takes on many permutations.  History has shown that many others besides the...