The first half of May resulted in several new retail tenants filing for protection under chapter 11 of the United States Bankruptcy Code, including, but not limited to, J.Crew, Gold’s Gym, Stage Stores, Neiman Marcus, and most recently, JCPenney. While the number of retail tenants filing for bankruptcy has been steadily increasing since the onset of the COVID-19 pandemic, Neiman Marcus and JCPenney are the first major department stores, or anchor tenants, to file for bankruptcy. These filings present the greatest threat to shopping centers and their owners and operators to date. Landlords will need to proactively protect their interests so as not to further jeopardize the long-term success of their shopping centers. This article provides a glimpse into some of the key issues and considerations facing our shopping center clients.

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