Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Brooks Brothers Can Skip Rent After Judge Rejects Landlord Claim

July 30, 2020, 5:46 PM

Landlords lost a bankruptcy fight to force Brooks Brothers to start paying rent now that the suit retailer is free from most pandemic restrictions.

  • U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware gave the clothier permission to withhold about $14 million in rent for August and September, finding that the economic crisis isn’t over just because many states have allowed retailers to reopen
  • Before Sontchi ruled, landlord attorneys said they feared that if Brooks Brothers could skip rent payments, other bankrupt retailers would try to do the same
  • Sontchi rejected arguments that Brooks Brothers was refusing to reopen stores simply ...