99 Cents’ Portfolio Liquidation Garners $168M

Discount retailer 99 Cents recently liquidated its portfolio of 44 owned locations and 333 leased real estate assets. Patrick Collins provided insight to Commercial Property Executive on the retailer’s incentives to expedite the sales process during bankruptcy proceedings.

From the article:

The real estate portfolio liquidation process is not unique to the 99 Cents case, according to Patrick Collins, Farrell Fritz, P.C.

“Commercial leases are often marketed by retailers undergoing liquidation in bankruptcy,” Collins said. “Whether a commercial lease is subject to being sold for value in a bankruptcy case depends on several factors, including the amount of rent stated in the lease compared with rent at the market rate for that location and the remaining lease term.”

The retailer in bankruptcy has a strong incentive to carry out the sales process as quickly as possible because landlords are entitled to collect rent during the pendency of the bankruptcy case until the lease is assumed and sold or rejected, Collins explained.

Read the article here:

99 Cents’ Portfolio Liquidation Garners $168M – Commercial Property Executive