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Mattel Inc. shares reversed course to rise as much as 10 percent on Friday, as investors looked past the toymaker’s “ugly quarter” in the all-important holiday period to the management’s confident tone on the turnaround efforts, Reuters reported. The company’s shares dropped 7 percent premarket, after dipping as much 11 percent in extended trading on Thursday following the company’s surprise quarterly loss. Faced with weak demand for its brands such as Hot Wheels and Barbie due to a shift among children toward video games and electronic toys, the company had stepped up efforts to cut costs, streamline its portfolio and pull back inventory from retailers. Mattel warned in October that the bankruptcy of Toys 'R' Us would cause it to miss its full-year revenue forecast and forced it to suspend its dividend to free up cash. “We’ve taken the opportunity to make the tough decisions in 2017 to set the foundation for continued progress on our transformation in 2018,” Mattel CFO Joseph Euteneuer said on Thursday.

Bon-Ton Stores Inc., one of the largest regional department store chains in the U.S., sought bankruptcy protection yesterday as discussions with its debt holders have yet to come to a conclusion, MarketWatch.com reported. The Pennsylvania-based retailer filed for chapter 11 in U.S. Bankruptcy Court in Wilmington, Del., in a bid to deal with a crushing debt load and declining sales. While under bankruptcy protection, Bon-Ton will explore strategic alternatives, including a sale of the company or certain assets as a part of the reorganization plan. The company, which owns 260 stores, has announced it would be closing 42 of its stores across the Northeast and Midwest. Read more.

Occupancy issues are at the heart of many significant retail cases, as detailed in the forthcoming ABI publication Retail and Office Bankruptcy: Landlord/Tenant Rights, available for pre-order at the ABI Store. 

The announcement of the closure of 182 Toys “R” Us stores last week — part of the retailer’s chapter 11 filing last fall — has put roughly $500 million in commercial mortgage-backed securities (CMBS) at risk, according to a report from Morningstar Credit Ratings, the Commercial Observer reported. Analysts at the rating agency identified 20 CMBS loans, with a combined balance of roughly $500 million, that could come under fire due to occupancy concerns following the closings. The report, issued on Tuesday, indicates that there are 40 CMBS loans — with a combined balance of $1.47 billion — that are exposed to the recent Toys “R” Us store closures. While 20 of those loans — with a combined balance of $500 million — are of concern due to occupancy issues following Toys “R” Us’ departure, the remaining 20 loans haven’t raised red flags due to the fact that Toys “R” Us doesn’t represent a large enough portion of each asset’s leasable space. Read more. 

Occupancy issues are at the heart of many significant retail cases, as detailed in the forthcoming ABI publication Retail and office Bankruptcy: Landlord/Tenant Rights, available for pre-order at the ABI Store. 

Bon-Ton Stores Inc, one of the largest U.S. department store operators, has secured a loan that will allow it to file for bankruptcy as early as Sunday, Reuters reported. The move will make Bon-Ton, which has about 260 stores and nearly $1 billion in debt, the first major U.S. brick-and-mortar retailer to file for bankruptcy this year. Last year, more than 15 U.S. retailers filed for bankruptcy, the most in six years, as consumers moved more of their shopping online. The loan will help Bon-Ton continue to operate in bankruptcy and carry it through a potential sale, according to sources. The York, Pa.-based retailer has also retained law firm Young Conaway Stargatt & Taylor LLP for its filing, in addition to attorneys from Paul, Weiss, Rifkind, Wharton & Garrison LLP.

A bankruptcy court confirmed Gander Mountain’s liquidation plan and granted the company’s motion for substantive consolidation of the debtors’ assets, liabilities and operations, according to a press release. Camping World Holdings purchased a majority of the Company’s assets under a § 363 sale and is operating approximately 50 former Gander Mountain store locations under the name Gander Outdoors. The privately-held outdoor specialty retailer filed for chapter 11 protection on March 10, 2017, listing more than $500 million in assets. The company emerged from a previous bankruptcy in March 1997.

Struggling retailer Bon-Ton Stores Inc. has put together a turnaround plan focused on closing underperforming stores, providing more sought-after merchandise, improving its marketing and increasing online-related sales by 50 percent in the next two years, the Milwaukee Journal Sentinel reported. Details of the turnaround plan were disclosed yesterday in connection with a debt restructuring that Bon-Ton is working on with its debt-holders. Bon-Ton, which has dual headquarters in Wisconsin and York, Pa., has been unprofitable for the past six years and recently missed a $14 million debt payment, fueling speculation the company would file for bankruptcy. The company, which owns Boston Store, Younkers and other department stores, has debt of about $1.1 billion. Documents made public Monday indicate the restructuring could take place out of court or in bankruptcy court with a chapter 11 filing as soon as Feb. 4.

Discount department store operator Stein Mart Inc. has hired advisers to help it explore strategic alternatives as the chain continues to struggle, WSJ Pro Bankruptcy reported. The Jacksonville, Fla.-based retailer has hired Foley & Lardner LLP as its legal adviser, and the firm is also working with Alvarez & Marsal as its financial adviser. Stein Mart’s management also interviewed investment banks this week as it looks to possibly put the company up for sale. The retailer, which sells apparel and shoes, and home décor, was particularly hurt during the third quarter by Hurricanes Harvey and Irma because it has a third of its stores in Texas and Florida. Stein Mart said in public filings the company had to close more than half of its stores in these states during the hurricanes for multiple days, or had to reduce its hours of operation.

A bankruptcy judge gave his formal approval to the sale of 28 Perkins restaurants, including two local locations, at a hearing in Erie, Pa., this week, the Star Beacon reported. Judge Thomas Agresti signed off on Tuesday on an order that accepts the $7.8 million deal that will see a Pennsylvania company acquire acquire the assets of Unique Ventures Group, the prior owner, according to M. Colette Gibbons, an attorney who is serving as chapter 11 trustee for UVG. UVG, based in Meadville, Pa., filed for chapter 11 protection almost a year ago, and the assets were put on the auction block earlier this month. Three bidders emerged, with 5171 Campbells Land Co., of Monroeville, Pa., submitting the highest quote.

Just months after emerging from bankruptcy, teen apparel retailer Rue21 Inc. is struggling again following poor holiday results, WSJ Pro Bankruptcy reported. The Warrendale, Pa.-based retailer told its new equity investors in an earnings call last week that the company wasn’t happy with its own performance during the crucial holiday season. Moreover, CIT Group, has decided to pull back credit to vendors selling merchandise to Rue21, according to the people familiar with situation.