The coronavirus has dragged down sales at restaurants around the world, and led many already-struggling eateries, such as the parent of Chuck E. Cheese and the U.S. arm of Le Pain Quotidien, to buckle under debt loads.
The lender group was already set to take over most of J.C. Penney’s real estate at the outset of the bankruptcy case, with a plan that would have involved spinning the properties into a real estate investment trust and selling the rest of the retailer to the highest bidder.
Retailers have struggled during the coronavirus pandemic, as consumers lose jobs and the will to shop and dress up, with Brooks Brothers, J.C. Penney, J. Crew and Neiman Marcus declaring bankruptcy in 2020
Pizza Hut franchisee’s NPC International Inc., the holding company of Chuck E. Cheese CEC Entertainment Inc. and the U.S. arm of Le Pain Quotidien have sought bankruptcy protection since the pandemic started.
Sparc Group, which is backed by Barneys New York owner Authentic and mall landlord Simon, agreed to a $305 million bid in a court-supervised auction for Brooks Brothers’ global business operations.
Retailers, many already struggling with competition from online shopping, have been among the hardest hit by Covid-19. Lockdowns drained revenue, helping to tip companies including J.C. Penney Co., J. Crew Group Inc. and Neiman Marcus Group Inc. into bankruptcy.
