Protecting Your Shopping Center From Going-Out-Of-Business Sales, ICSC Shopping Center Law & Strategy, Fall 2016.
In an article published in the October issue of International Council of Shopping Centers, Graham Stieglitz provides insight for how a retailer who is approaching bankruptcy should handle their business. Stieglitz begins by informing retailers that they need to perform an analysis of which leased store locations are not profitable and ultimately which of the merchandise will be liquidated. Stieglitz explains the six step process the retailer will go through: approval of an agreement with the liquidator; the ability to conduct GOBS at certain stores; permission to establish auction and bid procedures for the assets; permission to sell the inventory at the closing stores free and clear of liens and claims; a waiver of debtor's compliance with various state and local laws that would prohibit or otherwise restrict a GOBS; and a waiver of any restrictions in the underlying lease that forbid or diminish the debtor's ability to conduct GOBS as proposed.
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