Modell’s Sporting Goods Inc. is asking a judge to suspend its bankruptcy case and its store-closing sales, citing the impact of government restrictions on retailers due to the coronavirus pandemic, WSJ Pro Bankruptcy reported. State limitations and prohibitions on non-essential shopping have forced Modell’s to halt liquidation sales, leaving the company with no choice but to temporarily mothball its operations, Modell’s lawyers said in a filing Monday in U.S. Bankruptcy Court in Newark, N.J. The New York area retailer, which filed for bankruptcy two weeks ago, had planned to conduct going-out-of-business sales at its 134 stores. But the retailer had to pivot from that plan last week, terminating all employees at stores and distribution centers, as well as laying off most of its corporate employees. The company hopes to hire back terminated employees to conduct going-out-of-business sales once those can resume, Modell’s said. Corporate employees aren’t receiving severance. Modell’s is asking Judge Vincent F. Papalia to temporarily suspend all deadlines. A hearing on its bid to suspend its chapter 11 case is scheduled for today in Newark bankruptcy court.
