The NRA declares bankruptcy: 5 questions answered

What precipitated this announcement?

New York Attorney General Letitia James sued the NRA in 2020 over alleged financial irregularities, such as improperly making millions of dollars in payments to benefit longtime leader Wayne LaPierre and other executives. Among the lawsuit’s allegations is a claim that the NRA tried to disguise trips to the Bahamas and other forms of lavish compensation as business expenses. James seeks to dissolve the organization. Though it disputes many of the charges, the organization has admitted to experiencing a “significant diversion of assets” through reimbursements for personal expenses. These issues have also resulted in litigation stemming from the relationship with marketing and public relations firm Ackerman McQueen.

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One year into pandemic, Main Street bankruptcies continue

From iconic department stores to entertainment giants, the coronavirus has seemingly spared no one in its devastation of the U.S. economy.

Falling consumer demand, reduced entertainment spending, and stay-at-home orders mandating certain businesses stay closed continue to take their toll on a retail industry that has been struggling for the past several years as consumers pivot to online shopping.

Even as the economy slowly reopens, social distancing measures are impacting restaurant and store capacity, creating longer-term problems.

While bankruptcy doesn’t inherently mean that a company will go out of business — it’s more a financial restructuring — it does spell news of changes to come.

Here’s a list of all the major companies to have filed for bankruptcy so far since the coronavirus pandemic hit the U.S.

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Mattress Firm store in Oceanside has closed amid bankruptcy filing

A newly closed Mattress Firm store in Oceanside is among 99 locations in the retailer’s second round of closures as part of its bankruptcy protection filing.

The 4,000-square-foot store, which was once a Sleepy’s — the Hicksville-based mattress retail chain was acquired for $780 million by Mattress Firm two years ago — was located on 3150 Long Beach Rd. The property is owned by United Properties Corp. in East Meadows.

A public relations representative for Mattress Firm, when contacted about the closing of the Oceanside store, didn’t provide updated information.

Houston-based Mattress Firm filed for Chapter 11 bankruptcy protection in federal court in Delaware on Sept. 28, citing market saturation and competition from online mattress retailers, among other factors.


Mission Coal files for bankruptcy—5th coal company in 3 years

A Tennessee coal mining company that filed for bankruptcy this week is the second coal company to go bankrupt during Donald Trump’s pro-coal presidency. It’s also the fifth U.S. coal industry bankruptcy in the last three years as competitors in the energy market continue to drive coal into the dust pile.

Mission Coal, an operator of three mines in West Virginia and one in Alabama, filed for Chapter 11 bankruptcy protection on Sunday listing about $175 million in debt and just $55,000 cash on hand, according to court filings. This small company joins Colorado-based Westmoreland Coal, one of the country’s oldest coal companies, which filed for bankruptcy earlier this month, and Peabody Energy, Arch Coal and Alpha Natural Resources, which all have ended up in bankruptcy courts since 2015.


David’s Bridal flirts with possible bankruptcy after skipping debt payment

The nation’s leading wedding retailer is flirting with the possibility of bankruptcy protection, which often involves some store closures, after skipping a key debt payment.

David’s Bridal, whose tight grip on the wedding business has loosened in recent years amid digital competition and declining marriage rates, failed to make a key loan payment Monday.

That move served as a warning to creditors that the company is barreling toward a restructuring effort of some kind. Failing to make a debt payment is often a precursor to filing for Chapter 11 bankruptcy protection.

There’s a “very high likelihood” of bankruptcy or a consensual debt restructuring for David’s Bridal, said Mathew Christy, an S&P Global Ratings analyst who tracks the retailer.

S&P Global Ratings on Tuesday lowered David’s Bridal’s credit rating from CCC-, which suggests the borrower is vulnerable to not paying back its debts on time, to SD, which indicates the company has selectively defaulted on a debt obligation but plans to continue making payments.


Sears, the store that changed America, declares bankruptcy

New York (CNN Business)Sears, the once-dominant retail chain that changed how Americans shopped and lived, has filed for bankruptcy.

The 132-year-old company has been struggling for several years and is drowning in debt. The final straw was a $134 million debt payment due Monday that it could not afford.
Sears Holdings (SHLD), the parent company of Sears and Kmart, is among dozens of prominent retailers to declare bankruptcy in the era of Amazon (AMZN).
The filing in federal bankruptcy court in New York came in the early hours of Monday morning. The company issued a statement saying it intends to stay in business, keeping open stores that are profitable, along with the Sears and Kmart websites.


Clinton Portis owes his mom $500K, $5 million in total debt

Clinton Portis filed for Chapter 11 bankruptcy in November. And the filings, published by Deadspin, reveal that the former NFL running back owes a lot of money to a lot of people including his mom.

Portis’s debt to creditors, in total, adds up to $4,857,659.50 — a number equivalent to more than 11 percent of Portis’s total earnings in a nine-year, NFL career according to Spotrac data. But it’s the breakdown of that debt that makes this story a bit bizarre.

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American Apparel files for bankruptcy

Troubled teen apparel retailer American Apparel Inc filed for bankruptcy protection on Monday and said it had reached a restructuring support agreement with 95 percent of its secured lenders.

“This restructuring will enable American Apparel to become a stronger, more vibrant company,” Chief Executive Paula Schneider said in a statement.

The company listed assets and liabilities of between $100 million and $500 million in its bankruptcy filing.

The case is in U.S. Bankruptcy Court, District of Delaware, Case No: 15-12055.

(Reporting by Supriya Kurane in Bengaluru; Editing by Gopakumar Warrier)

http://www.msn.com/en-us/money/companies/american-apparel-files-for-bankruptcy/ar-AAf7cVf?ocid=ansmsnmoney11


No Great Places to Shelter From This Market Turmoil

Bonds are still doing their job this year as investors’ best friends during a downturn: They’re holding up better than stocks, cushioning the blow for balanced investors. High-quality, investment-grade U.S. bonds have returned 0.9 percent through Wednesday, while the Standard & Poor’s 500 index has lost 7.4 percent on worries about the strength of the global economy. The problem is that bonds are not doing as good a job as in past downturns, and the outlook for them is dim. Super-low interest rates mean bonds don’t pay investors much for the bonds they hold or are buying now. And those bonds may fall in price in the coming months and years if interest rates increase as the Federal Reserve, as expected, continues to move short-term rates higher.

http://www.msn.com/en-us/money/markets/no-great-places-to-shelter-from-this-market-turmoil/ar-BBocyJU?ocid=BDT3DHP