Chapter 11 is Unfair to Landlords
News October 15th. 2008, 8:12amIf you’ve been monitoring the retail news lately, you probably know that there have been a bunch of retailers filing for Chapter 11 bankruptcy this year. With the slow economy and restricted access to credit, many poor performers have finally run out of options and filed for bankruptcy. The bankruptcy law is very unfair to the landlords that own these properties though. Once a company files bankruptcy, it can choose which leases it wants to keep and which it wants to get rid of. The companies also like to use strongarm tactics and threats to force landlords into rent concessions and the like. With all the talk of bailouts today, it’s time we make some changes to the system to protect the landlords and creditors as well.