Movie Gallery, Inc. Bankruptcy

Rejection of Leases

Bankruptcy Code 365 provides that subject to court approval, the debtor may assume or reject any executory contract or unexpired lease. This gives the debtor the power to pick and choose amongst their executory contracts and leases. In the retail context, this allows the debtor to shed the leases for its underperforming locations, while keeping the leases for its profitable locations. When used properly, rejection of leases can slim down a retailer to a core of profitable locations and increase its prospects post-bankruptcy. However, not all retailers take full advantage of their power to reject leases.

Ronald Page, Jr. of Ronald Page, PLC has extensive experience representing lenders, landlords, vendors, and other creditors in retail bankruptcy cases. His offices are located outside of Richmond, Virginia and he is able to advise you regarding the Movie Gallery Bankruptcy.

East Cleveland Mayorial Race

Tomorrow voters will decide who is their new mayor.  Eric Brewer, the incumbent, is running against Gary Norton, Jr.  Brewer made headlines earlier this year when photos surfaced showing him wearing some rather lacy lingerie.  We are about to learn if that had any impact on voter’s perception of him.

East Cleveland is in trouble and hopefully voters will stay focused on what is important.

The issues.

Richmond Bankruptcy

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The current economic climate across the United States is rather dire and has resulted from a confluence of factors. These factors mean that the economic hardship is not isolated to any one sector. Unlike in previous downturns where one sector was disproportionately impacted in the current downturn a very wide range of industries and individuals have been impacted. As such the number of bankruptcies going through the court systems is at an all time high. Richmond most certainly has not been spared from this and many bankruptcies are a very common occurrence in Richmond. These bankruptcies are impacting both individuals and businesses alike. One of the most prominent Richmond based bankruptcies, as of late has been the bankruptcy of Circuit City. Due to the tremendous pressure on consumer credit and the fact that individuals are saving more money for fear of job loss this means that consumer discretionary spending has taken a tremendous hit. This also happens to be the area where Circuit City specializes, as consumer electronics are fundamentally discretionary. When you couple this economic climate with the fact that Circuit City is facing fierce competition this made a recipe for disaster. Bankruptcy in Richmond beyond Circuit City is an enormous problem and Circuit City is just the largest of many businesses suffering this fate.