Sheppard’s Restructure THIS! podcast explores the latest trends and controversies in Chapter 11 bankruptcy, commercial insolvency and distressed investing. In this episode, partner and host Justin Bernbrock welcomes Lorenzo Marinuzzi, Bankruptcy partner and global chair of Morrison & Foerster’s Business Restructuring + Insolvency group, to discuss retail bankruptcy, then and now. They explore how e-commerce and non-traditional lenders have reshaped the restructuring landscape, the unique dynamics of luxury retail cases and insights from the Saks Global Chapter 11 bankruptcy.
What we discuss in this episode:
- How Lorenzo’s earlier retail cases compare to the restructurings we see today
- How retail bankruptcies have been affected by the involvement of distressed debt funds and other non-traditional lenders
- Vendor–lender tensions in luxury bankruptcies, especially where vendors hold outsized leverage
- The unusually complex structure of the Saks DIP, including atypical vendor protections
- Landlords’ shifting influence in retail Chapter 11 cases and how their leverage has declined.
- How Lorenzo navigated Amazon’s objection to the Saks DIP and resolved the financing structure
- How the Saks Global settlement resulted in a litigation trust to pursue claims tied to the Neiman acquisition and the competing stakeholder interests involved
- Whether accelerated case timelines push DIP claims into impairment territory, and if that trade-off is becoming normalized
- Reassessing the viability of reorganizations in retail amid the rise of e-commerce
- How unsecured creditors (e.g., vendors, suppliers, trade creditors) doing business with financially distressed retailers can best protect themselves?
- Lorenzo’s expected trends in retail bankruptcy and where he believes the market is heading
About Lorenzo Marinuzzi
Lorenzo Marinuzzi is a partner at Morrison & Foerster, where he serves as global chair of the Business Restructuring + Insolvency group. Based in New York and Austin, he has practiced bankruptcy law for 30 years, representing debtors, creditors and creditors’ committees in complex bankruptcy cases, workouts and litigation across a wide range of industries, including retail, airline and cargo transportation, energy, oil and gas, banking and finance, mortgage origination and servicing, and telecommunications.
His retail bankruptcy work spans the full arc of the industry’s transformation—from early cases involving Ames Department Stores and Kmart to today’s luxury retail restructurings, including his current role as lead committee counsel in the Saks Global Chapter 11.
About Justin Bernbrock
Justin Bernbrock is a partner in the Finance and Bankruptcy practice group in Sheppard’s Chicago office, where he focuses on all aspects of corporate restructuring, bankruptcy and financial distress. He represents clients across a wide range of matters, including debtor and creditor representations. He has substantial experience in out-of-court and in-court restructurings, primarily in the Southern District of New York, Eastern District of Virginia, District of Delaware and Southern District of Texas.
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This podcast is for informational and educational purposes only. It is not to be construed as legal advice specific to your circumstances. If you need help with any legal matter, be sure to consult with an attorney regarding your specific needs.