News & UpdatesRecent Blogs

Rob Bovarnick writes weekly posts for Forbes.com

Check out his most recent article on bankruptcy.
https://rbovarnick.com/wp-content/uploads/2020/09/oie_16143324CvmxEZ5m.png

Since the nationwide shutdown, many people have been waiting for an avalanche of bankruptcy filings under Chapter 11. As of the writing of this article, there have only been a few notable filings, such as the XFL, Frontier Communications and True Religion. While there has been a lot of anticipation about filings by large retailers, such as Neiman Marcus, Lord & Taylor and JC Penny, none have filed.

We all find ourselves in a similar place with our businesses. Best case scenario is your business is able to continue operating relatively normally (while you are home). More likely is you are able to operate, but at a reduced level. There is also a possibility that you have stopped operating. What should you be doing at this time? Here are some thoughts.

On April 23, 2020, Hair Cuttery (corporate names Creative Hairdressers, Inc. and Ratner Companies) filed Chapter 11 bankruptcies. CHI has over 800 salons nationwide, with over 10,000 employees. Last year, even though it had over $440,000,000 in revenues, CHI was having difficulties (such as being in covenant (nonpayment) default with it primary secured lender). So,...

In the new reality where we find ourselves, many people have reviewed their contracts to see if there is a “force majeure” clause that will excuse performance until life returns to normal. What if your contract doesn’t have that clause? The next step is to rely on the doctrine of “impossibility of performance.” This is...

Force Majeure – sounds powerful, sounds foreign. Many businesspeople aren’t familiar with this lawyerly term. Should you shrug your shoulders and move forward or pay attention? People often ask me about boiler plate clauses in contracts. They ask—are they necessary? (sometimes). Are they just there so an attorney can make more money? (despite public opinion,...