Commentary: Is American Retail at a Historic Tipping Point?
The shift to online retailers has been building gradually for years, but economists, retail workers and real estate investors say that it appears that it has sped up in recent months, according to a New York Times commentary on Saturday. Between 2010 and 2014, e-commerce grew by an average of $30 billion annually. Over the past three years, average annual growth has increased to $40 billion. “That is the tipping point, right there,” said Barbara Denham, a senior economist at Reis, a real estate data and analytics firm. “It’s like the Doppler effect. The change is coming at you so fast, it feels like it is accelerating.” This transformation is hollowing out suburban shopping malls, bankrupting longtime brands and leading to staggering job losses. More workers in general merchandise stores have been laid off since October, about 89,000 Americans, according to the commentary
Hear more perspectives on the outlook for the retail industry on Saturday at ABI’s Annual Spring Meeting! The special live edition of ABI’s “Eye on Bankruptcy” luncheon program will feature Jason Brookner of Gray Reed (Dallas) and Perry Mandarino of B. Riley & Co. (New York) providing their thoughts on distress in the retail and E&P sectors.
Pew Survey: Americans Want Payday Loans to Be More Regulated
In a recent survey from Pew Charitable Trust, 70 percent of the general public and payday loan borrowers want payday loans to be more regulated, Yahoo.com reported yesterday. Currently, it is up to each state to set the lending terms, and the interest rates vary greatly depending on where you live. For instance, payday lenders in Idaho charge an average of 582 percent annual interest on their loans, followed by South Dakota and Wisconsin at 574 percent. According to the Consumer Financial Protection Bureau (CFPB), the typical two-week payday loan with a $15-per-$100 fee carries an annual percentage rate (APR) of 400 percent. At least 16 states have banned or capped payday interest rates at 36 percent, but it certainly isn’t the norm. That said, over the last couple of months, several states have introduced legislation to mandate regulations. On April 6, New Mexico Gov. Susana Martinez essentially banned payday loans when she signed a bill eliminating small loans with terms of less than 120 days, and capping interest rates on small loans at 175 percent.
Puerto Rico Draws Bondholders' Ire for Comments on Debt Talks
Less than a week after an initial meeting between creditors and crisis-wracked Puerto Rico, a lawyer for a group of hedge funds and other owners of Puerto Rico’s general-obligation bonds issued a statement criticizing Elias Sanchez, a top aide to Governor Ricardo Rossello, for speaking publicly about the talks at a conference in San Juan, Bloomberg News reported. Sanchez said that the government hasn’t made any restructuring offers to debt holders — a disclosure that was cast as being at odds with the confidential nature of the discussions. Comments made by Sanchez and Rossello were appropriate and didn’t reveal confidential information, John Rapisardi, a partner at O’Melveny & Myers LLP, wrote in a letter yesterday to Retired Judge Allan Gropper, who is serving as mediator for the Puerto Rico debt talks.
ABI's 200th Podcast Features Judge and Academics Discussing Side Agreements in Corporate Bankruptcy
ABI Resident Scholar Andrew Dawson talks with Chief Bankruptcy Judge Brendan Shannon (D. Del.; Wilmington) and Prof. Anthony Casey of the University of Chicago Law School about intercreditor and "bad boy" agreements in corporate bankruptcy cases. Prof. Casey is a co-author of "Bankruptcy on the Side," a paper that examines how judges should interpret and enforce side agreements. Judge Shannon, with more than 12 years of experience on the Delaware bench, provides his thoughts on the research and the challenges that these side agreements often present in his courtroom. Listen here.
First Consumer Bankruptcy Commission Open Meeting on May 6; Submissions Requested by April 27
The co-chairs of ABI's Commission on Consumer Bankruptcy, retired Bankruptcy Judges William Brown and Elizabeth Perris, are encouraging consumer bankruptcy practitioners to submit written statements and requests for time in advance of the Commission's first meeting on May 6. The Commission’s first public meeting will be held during NACBA’s 2017 Annual Convention on May 6 from 8:00-10:30 a.m. in Oceanic Room 1 of the Walt Disney Dolphin Hotel, the conference hotel. If you are attending NACBA, the Commission invites you to request time to make an oral statement at this public meeting, and in addition (or alternatively) to submit a written statement to the Commission. To request a time for a public statement or to send a written statement, please use the Commission’s public email address, [email protected]. Everyone who requests a time for an oral statement is encouraged to submit a written statement as well. The Commission hopes to accommodate as many speakers as possible, and speakers can expect to be limited to about five minutes. However, if more people request to speak than there is time available, the Commission will give priority to those who have submitted a written statement. For full consideration, requests should be submitted by April 27. To learn more about the Commission, be sure to visit http://consumercommission.abi.org.
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New on ABI’s Bankruptcy Blog Exchange: Lawmakers Push for Tougher Disclosures on Energy Loans
Lawmakers from both political parties are increasingly interested in forcing lenders that offer loans to upgrade home heating and cooling systems to issue better disclosures, a prospect that has some in the industry nervous, according to a recent blog post.
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