With the majority of stores closed last quarter because of the coronavirus, the retailer and apparel supplier lost more than $39 million.
As retailers pursue swift restructuring plans to start anew, they face the safety risks of doing so during a public health crisis.
The bankrupt retailer’s landlords objected to the notion of deferring rent payments for 60 days, citing reopenings in a number of states.
The department store business was cut nearly in half as the COVID-19 shutdown shutout retailers as consumers stayed home.
The COVID-19 era’s retail bankruptcies will highlight the power struggles between debtor-in-possession financing lenders and trade vendors.
The real estate investment trust hopes to have all of its properties open by mid-June. Meanwhile, only about 26 percent of tenants paid April rent.
Kontoor Brands charts go-forward strategy as the effects of the coronavirus play out around the world.
With its Chapter 11 filing Monday, the retailer is set to get new owners and a slimmer profile.