The Klein Advisor – October 2016
On October 11, 2016 by Eric Klein
Throwing in the Towel – Sports Authority Filed for Bankruptcy
Finally, football season is upon us! Getting hyped for Sunday’s game, you grab your lucky number 13, Dan Marino jersey (go Dolphins!) only to realize it’s probably time to retire that too. Unfortunately, a quick trip down to your local Sports Authority is no longer an option.
Sports Authority filed for Chapter 11 bankruptcy protection this past March with plans to reorganize by closing 146 out of its 463 stores. Instead of closing less than half of their stores, Sports Authority changed strategies and liquidated its assets. Sources say one of the many reasons well-known stores and family run businesses file Chapter 11 bankruptcy is the inability to compete with big-box retail and online merchants.
A U.S. bankruptcy Judge denied Sports Authority’s request to pay up to $2.85 million in bonuses to executives that oversaw the winding down of the national sporting goods chain. Sports Authority claimed the bonuses were important to make sure executives received the most out of its assets by sticking to the budget and preventing waste.
After entering into a settlement agreement between the creditors and lenders, the unsecured creditors agreed to drop their claims in order to convert from a Chapter 11 to a Chapter 7 liquidation. At the June auction, Dick’s Sporting Goods, Inc. acquired the Sports Authority name and other intellectual property.
The Scoop on Real Housewives New York star, Jules Wainstein
Real Housewives of New York star, Jules Wainstein, was in Court on September 8, 2016 in front of the Honorable Michael L. Katz. Sources claim Wainstein is asking her Husband to pay $25,000 per month in child and spousal support. According to a Courtroom insider, “Jules asked for $9,000 a month in tax-free child support and $16,000 for spousal support.”
Radar online reported Michael Wainstein claims he does not have the ability to pay up to $25,000 in support, his business has suffered due to the publicity of the divorce battle. The Honorable Michael L. Katz has requested Mr. Wainstein provide proof of his claims, therefore holding off on ruling until he reviews the Husband’s records.
In the interim, Radar online reports Mr. Wainstein has been ordered to pay $10,000 per month in temporary support.
For questions concerning the rights of support, please contact our legal team at (561) 220-6659.
Wiping out Zombies
Sounds like a scene out of the hit TV series, The Walking Dead, however this article is not about a corpse revived by witchcraft, it is about properties that are in the foreclosure process, but have not been repossessed by the lender.
According to CNBC, banks are taking the vacant homes and selling them quickly. Senior vice president, Daren Bloomquist of ATTOM Data Solutions, a powerful multi-sourced property data warehouse that contains enhanced premium real estate data for over 150 million properties stated, “We believe it’s a combination of market conditions that are ideal for selling properties, along with political pressure for banks to deal with these properties and not allow them to linger in foreclosure indefinitely.”
You would think with the current real estate market and short supply of properties, lower priced homes would be ideal, however the issue with these vacant homes is that the majority of them are located in undesirable areas and are in despair. This poses a problem for investors.
CNBC reported there is opportunity for landlords and home-flippers to grab an investment however most of the “good” properties are sold at a Courthouse auction. The zombie homes that are left are typically in need of a lot of repairs in order for them to be rented or sold. Another issue is that lending requirements are more strict when a distressed property is involved.
Bloomquist stated, “Eventually there will be a demand…,” and with the data presented by ATTOM, bank owned properties are expected to jump 67% during the period.
Contact our legal team for more information on the foreclosure process.
Our Trusted Partner
Tim Hughes, DVM
Pet Medical Center of Boca Raton
Klein Law Group has a vast network of business professionals. We are committed to building strong relationships within the community. We value our trusted partners and recommend these professionals to many of our clients in need of a specified service. This month we want to recognize Dr. Hughes as our trusted partner.
Dr. Hughes graduated from Virginia Maryland Regional College of Veterinary Medicine in 1990 and is an owner of the Pet Medical Center of Boca Raton. Dr. Hughes has several years’ experience and is very knowledgeable when it comes to the care and medical needs of your pet.