Modell’s to ‘Mothball’ Bankruptcy Case During Virus Shutdown

Modell’s Sporting Goods Inc. is seeking the “extraordinary remedy” of suspending its bankruptcy case because the new coronavirus pandemic has shut its stores and halted going-out-of-business sales.

Modell’s is seeking a temporary suspension of up to 60 days for all deadlines and activities in its Chapter 11 case in an emergency motion filed Monday in the U.S. Bankruptcy Court for the District of New Jersey.

The suspension will allow the company to avoid incurring unnecessary administrative costs and professionals’ fees while the company is unable to pursue liquidation, Modell’s said.

The “cornerstone” of Modell’s bankruptcy was the liquidation of all ...