Businesses starting to go bankrupt

[Anonymous]

My daughter trained with Adagio Ballet. Just got an email that they are permanently closing because they can't survive the pandemic. JC Penny, J.Crew. So many businesses won't survive.

[Anonymous]

Many of the brick and mortar retail places have been stuggling for years and been on the death knell due to Amazon and online shopping. Women with families age 35 and younger do not go "shopping". They order online.

[Anonymous]

Any businesses that rely on personal training are going to go bankrupt unless its outdoors and highly offhand.

Karate.

Ballet.

Martial Arts.

Boxing.

Soccer.

I can see tennis and swimming lessons survive and that's it.

[Anonymous]

Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

[Anonymous]

Anonymous wrote:Many of the brick and mortar retail places have been stuggling for years and been on the death knell due to Amazon and online shopping. Women with families age 35 and younger do not go "shopping". They order online.

Exactly.

Target reported digital sales increased 141% during the first quarter due to Corona. I'd love to hear what Amazon's increase was.

[Anonymous]

Anonymous wrote:Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

If they're going to file for bankruptcy, they can't issue those refunds now or they'll be subject to clawback in the bankruptcy proceeding.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

If they're going to file for bankruptcy, they can't issue those refunds now or they'll be subject to clawback in the bankruptcy proceeding.

Wow.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

If they're going to file for bankruptcy, they can't issue those refunds now or they'll be subject to clawback in the bankruptcy proceeding.

Wow.

Wow what?

[Anonymous]

Anonymous wrote:My daughter trained with Adagio Ballet. Just got an email that they are permanently closing because they can't survive the pandemic. JC Penny, J.Crew. So many businesses won't survive.

Same here. Adagio location is so convenient. Now i have to drive all the way to ballet Nova. Ugh.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

If they're going to file for bankruptcy, they can't issue those refunds now or they'll be subject to clawback in the bankruptcy proceeding.

What is “subject to clawback”?

[Anonymous]

Anonymous wrote:Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

I wouldn’t hold your breath - I’m still waiting for my refund from spring break camp.

[Anonymous]

It sticks. My heart goes out to everyone. The owners, teachers, students, and parents. They are closing a business built from scratch and hardwork because of conditions that they have no control over.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

If they're going to file for bankruptcy, they can't issue those refunds now or they'll be subject to clawback in the bankruptcy proceeding.

What is “subject to clawback”?

DP. Bankruptcy law generally prevents businesses about to go bankrupt from making preferential payments prior to declaring bankruptcy. This is so that businesses can't send whatever money they have to certain parties, then declaring bankruptcy and there's nothing left for the other creditors. Payments that are made 90 days prior to the bankruptcy may have to come back and become part of the bankruptcy estate for the benefit of all the creditors.

[Anonymous]

J Crew is restructuring, not liquidating. They have done it before. Lots of the big companies will do that to offload the debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hope they're processing refunds for summer camp.

https://www.adagioballet.com/announcing-2020-summer-camps-arlington/

If they're going to file for bankruptcy, they can't issue those refunds now or they'll be subject to clawback in the bankruptcy proceeding.

What is “subject to clawback”?

DP. Bankruptcy law generally prevents businesses about to go bankrupt from making preferential payments prior to declaring bankruptcy. This is so that businesses can't send whatever money they have to certain parties, then declaring bankruptcy and there's nothing left for the other creditors. Payments that are made 90 days prior to the bankruptcy may have to come back and become part of the bankruptcy estate for the benefit of all the creditors.

+1. Payments made in the ordinary course of business (e.g., utility payments, paying routine vendor invoices) can be allowed, but any payments paid outside the normal course of business or that otherwise appear to be circumventing the priority of creditors. Customers looking for refunds for services purchased by not received are basically at the bottom of the priority list, so if these business were to issue those refunds and then file for bankruptcy less than. 90 days later, all of those families would get letter from the creditors committee demanding they return those funds or face a lawsuit. While a lawsuit against a single family wouldn’t be worth it, one filed against hundreds of families seeking a total of $100k+ may be worth filing because it will be cheaper for families to return those refunds than to hire an attorney.