Retail chains turn to planned bankruptcies for restructuring
NL TimesRetail chains in the Netherlands have increasingly found ways to continue operating after declaring bankruptcy, often in a slimmed-down form, De Telegraaf reports. On Tuesday, fashion retailer Vanilia filed for bankruptcy but may continue its operations due to "interest from multiple serious buyers," according to the bankruptcy trustees. Reinout Vriesendorp, a professor of insolvency law, acknowledged that planned bankruptcies, where a buyer is ready to continue operations after the company goes bankrupt, are not uncommon. Derk van Geel, a trustee currently overseeing the restart of Dunkin' Donuts, rejected the idea that shareholder involvement indicates a "planned bankruptcy." "A restart often comes at the expense of smaller creditors, such as suppliers, landlords, and employees," Vriesendorp said.
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