Retail

By Doug Greenspan, A&G Real Estate Partners The old playbook of waiting to address leases in bankruptcy is over. In today’s environment, where chainwide liquidation is becoming an increasingly common outcome, landlords cannot afford to be passive. It is crucial to proactively engage with tenants, understand their financial health, and be prepared to negotiate and adapt lease terms to help them avoid bankruptcy court.  Consider what has happened in American retailing since the pandemic. While some sectors thrived during the initial COVID-19 lockdowns and the subsequent release of pent-up demand, a troubling number of companies experienced a transient spike in sales fueled by government stimulus, only to see those gains evaporate. This left them in a precarious position in which they were unable to find their footing in the changed economic landscape. Conn’s, known for its Conn’s Home Plus banner, is one example. This publicly traded retailer saw an initial boost as temporarily cash-flush consumers invested in home goods and electronics. Sales soared, but then began declining in the fourth quarter of 2022. Management remained optimistic about a recovery of those prior volumes. However, as the stimulus faded and the broader economic environment began to be characterized by rising interest …