X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Now that all of the Circuit City’s 560 stores are dark, landlords are trying to fill the spaces left behind. Some are finding success, like one firm we recently spoke with, the Blue Bell, PA-based Goldenberg Group, which leased a former Circuit City location to furniture chain Raymour & Flanigan in a Philadelphia shopping center.We’re not sure if there are a lot of stories like that across the country, but it’s not difficult to guess that the process of filling these vacancies is tough, given that virtually every large retailer has cut back its expansion plans.But what if Circuit City had more time to try to find a buyer or restructure?The National Retail Federation would like to make that possible and scratch a 210-day limit that retailers now have to cancel a lease after filing. This 2005 amendment to the bankruptcy law was created, in part, so that landlords wouldn’t have to wait for an extended period of time while a bankrupt retailer reorganized, often leaving a large chunk of a shopping center dark.The NRF argues that retailers need more time – in some cases a year or more – to reorganize their finances and see if underperforming stores can turn around. The organization says that the current system, which holds a company to a lease or allows a landlord to terminate the agreement doesn’t give stores enough time.Obviously, most landlords are going to fundamentally disagree with allowing the retailers more time. They want control over their shopping centers. But has the recession, which will surely bring more retailer bankruptcies this year, changed the playing field?

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.