Cole Schotz P.C. has secured on behalf of Modell’s Sporting Goods a suspension in the proceedings of the company’s Chapter 11 Bankruptcy, to counter the operational shutdown of the Company’s store closing sales caused by COVID-19.
In making ground-breaking law, Cole Schotz relied on an infrequently used bankruptcy law provision in a way no party had ever done, allowing the sporting goods retailer to temporarily freeze its Chapter 11 case until at least April 30. The bankruptcy process is expected to resume once the coronavirus crisis is no longer deemed a threat and the stores can resume operations.
“We are extremely pleased to have obtained this first-of-its-kind order for Modell’s given the unprecedented circumstances posed by COVID-19,” said Michael D. Sirota
, co-chair of the Bankruptcy & Corporate Restructuring Department at Cole Schotz. “We are thankful that Judge Vincent F. Papalia extended extraordinary time, effort and considered the extraordinary circumstances in granting the requested relief for the benefit of all parties.”
Mitchell Modell, CEO and President of Modell’s Sporting Goods, commented: “I want to personally thank Judge Vincent F. Papalia for being so understanding in these most difficult and unprecedented times. The brilliant team of Michael Sirota and his spectacular colleagues from Cole Schotz presented clear facts, working around the clock to accomplish this result.. I also appreciate the collaborative efforts of the vendors and landlords in reaching this temporary solution.”
In addition to Mr. Sirota, the Cole Schotz team included members David M. Bass
, Felice R. Yudkin
and Rebecca Hollander