McDonald Hopkins LLC

The financial crisis of 2008, the resulting recession and the tepid recovery have all worked to suppress consumer spending. As a result, retail and logistics businesses in the U.S., with few exceptions, have experienced little or no growth in the past five years. Success, or at least survival, during this period has been possible because of occasional (and often seasonal) spikes in consumer spending and low borrowing costs resulting from the Federal Reserve’s low interest rate policies. A slow shakeout in the industry has been occurring, and could accelerate if interest rates rise or consumer spending slows.

Retail and distribution restructurings raise a number of issues that often challenge the knowledge and creativity of the company’s advisors. It is not unusual, for example, for a retailer to have a number of overseas suppliers that are unfamiliar with and uninhibited by U.S. laws. Convincing such suppliers to continue to do business with the distressed retailer requires planning, creativity and careful execution of the plan. Similarly, a retailer that leases multiple locations must be prepared to conduct a quick, but thorough, evaluation of its locations or face the prospect of losing locations. Logistics companies, in turn, must be prepared to address their significant working capital needs and lack of tangible assets to serve as loan collateral.

Our attorneys have successfully represented debtors, creditors, landlords, and other parties in interest in complex retail restructurings involving a whole range of financial and operational issues. Our firm has a comprehensive understanding of factors affecting retailers' businesses and the in-court and out-of-court restructuring tools available to address the specialized needs of retailers. We regularly advise retail clients on matters of importance in retail bankruptcies, including decisions on real estate leases, customer programs, and reclamation procedures. Whether we are acting on behalf of a regional or national retail company to relieve financial pressures or guiding a distribution service provider through the chapter 11 bankruptcy or out-of-court restructuring process, our attorneys have has the essential resources and experience to handle such matters.

McDonald Hopkins has advised financially distressed retail and distribution clients in the following matters:

Representative Retail Restructuring Cases:

• The Antioch Company, LLC; counsel to company
• Huffy Corporation; counsel to the Official Committee of Unsecured Creditors
• J. Marco Co.; counsel to the company

Representative Distribution Restructuring Cases:

• James Group International, Inc.; counsel to company
• O-J Transport Co.; counsel to company
• Rush Trucking Corporation; counsel to company
• TransLogic Auto Carriers, LLC; counsel to company
• Wolverine Transport Co.; counsel to company