Commercial leases in New York oftentimes require legal action to negotiate unpaid obligations or to proceed with an eviction. While you might feel stuck with a burdensome tenant, there are methods to collect on unpaid rent without forcing a tenant into filing for bankruptcy protection. At Jasne & Florio, L.L.P., we understand how you need to act quickly to prevent losing any funds owed to you under a lease obligation.
For one retailer, defaulting on its commercial leases appears to be a strategy open to negotiation with its landlords. A popular women’s clothing retailer announced that it would be shutting down 650 stores with nearly 60 locations throughout the Empire State. A large fashion conglomerate owns the chain of apparel goods, and reducing its underperforming stores may help improve the corporation’s overall operations.
According to the New York Post, the retailer threatened its landlords with bankruptcy protection if not relieved of its rental obligations. By offering landlords an option to keep its stores open for a few months through the end-of-year holiday season, it may avoid filing for Chapter 11 bankruptcy. Agreeing to its terms, however, requires landlords to accept the idea of forgoing full payment as contracted under its leases.
A tenant coming to you with an option such as this might not appeal to you if your property is in demand and a new tenant could easily replace a struggling one. There are alternatives available to protect your right to pursue an action over a tenant intentionally breaching its contractual obligations.
Our page on civil and commercial litigation provides more information regarding your legal options regarding contractual obligations.