With retail clothing companies seeing a 79% decline in business, several prominent retailers have recently filed for bankruptcy – most notably JC Penny, J. Crew (including Madewell) and Neiman Marcus. As a result, many wholesale vendors of apparel may be having their first ever experience with customer bankruptcies. Sellers must act swiftly when they learn a retail customer has filed. Delay or failure to do so may leave the vendors with little to no means of recovery. When a retailer files for bankruptcy, sellers have a variety of rights under the bankruptcy code and state law. Two of those most… Read more
