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.