Modell’s Sporting Goods is seeking a 45-day suspension in its Chapter 11 case claiming the COVID-19 pandemic has made it impossible to conduct going-out-of-business sales.
The retailer is asking New Jersey bankruptcy court to allow it to “mothball” operations and defer payments of all nonessential expenses until coronavirus restrictions lift and it can conduct the liquidation sales it said are the “cornerstone” of its case.
“The debtors, along with their professionals, have developed a plan to re-operationalize after COVID-19 abates and believe that the breathing-spell provided by the bankruptcy suspension is in the best interests of their estates and all creditors as it will allow the debtors, in time, to maximize the value of their inventory and leasehold interests,” Modell’s said, according to a report from Law360.
In its emergent filing, Modell’s seeks to cease operations at all 134 of their retail stores as well as the fulfillment of orders on their e-commerce site and to terminate store and distribution center employees. Modell’s has also asked to cease all in-person operations at their corporate headquarters as well as the termination of most corporate employees.