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 ...

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