Modell’s Sporting Goods is seeking a further delay in its Chapter 11 bankruptcy proceedings as COVID-19 continues to prevent the retailer from holding liquidation sales at physical stores, according to Law360.
In late March, Modell’s bankruptcy proceedings were suspended until April 30 after COVID-19 restrictions temporarily shuttered stores to prevent going-out-of-business sales. Modell’s was in the midst of closing its 134 stores after filing for Chapter 11 bankruptcy on March 11.
According to court filings, Modell’s wants the delay to last until May 30.

The retailer noted that social distancing and shelter-in-place orders “continue to prevent the debtors from conducting retail sales at their various locations” in a letter to U.S. Bankruptcy Judge Vincent F. Papalia. Creditors will have until April 24 to file objections with a telephone hearing scheduled for April 30.

Papalia already acknowledged the possibility of an extended pause due to the “uncertainty on top of uncertainty” caused by the health crisis, but Modell’s landlords have objected to a budget plan that has delayed rent payments until August.

Modell’s liquidated 19 of its 153 locations before shuttering its stores due to COVID-19.

Photo courtesy Modell’s