Legal Lens Renewed challenges for retail with Byron Moldo of Ervin Cohen & Jessup
Aug 26, 2025
In this discussion, Byron Moldo, a seasoned attorney from Ervin Cohen & Jessup, delves into the stormy waters of retail bankruptcies. He unpacks the effects of changing consumer habits and the steep rise in online shopping that have left physical stores gasping for breath. The conversation illuminates the significant hurdles landlords face from increasing vacancies and highlights examples like Claire's Holdings and Rite Aid. Moldo also outlines negotiation tactics for landlords and the cautious approach lenders are taking amid a wave of retail challenges.
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E-Commerce Shift Accelerated Retail Decline
- Consumer shopping habits changed dramatically with growth of online retail and COVID accelerated that shift.
- Many brick-and-mortar retailers couldn't sustain large footprints and therefore failed or filed bankruptcy.
Leases Are The Core Bankruptcy Battleground
- Leases are often the largest liability for large retailers with hundreds or thousands of locations.
- Debtors analyze and may sell or assume valuable leases to raise cash for the bankruptcy estate.
Driving Past A Vacant Rite Aid
- Byron described driving past a former Rite Aid now surrounded by a temporary fence and eyesore.
- He highlighted how large vacant retail spaces create problems for property owners and neighborhoods.