Bankruptcy & Restructuring News Headlines for Monday Jun 26, 2023

Here's what we are reading this morning:

Regional off-price retailer Forman Mills lays off nearly 300, closes stores as it mulls bankruptcy | Retail Dive: The company is working to sell itself, and may file for Chapter 11 if it can’t, according to a WARN letter sent to the state. Neither Forman Mills nor private equity owner Goode Partners immediately responded to requests for comment.

Wheels Up’s Jumbo Challenge: Post-Covid Turbulence: The private jet service says it can avoid bankruptcy by cutting unprofitable flights.

Buy Buy Baby suitors lose interest in keeping stores open: While Bed Bath & Beyond's Buy Buy Baby has a number of suitors circling its assets, interest has waned in keeping the chain's store footprint alive.

Crypto Custody Firm BitGo Abandons Purchase of Rival Prime Trust: Prime Trust has been losing clients and deposits to competitors for weeks amid mounting concerns over its business, a source at one former client told CoinDesk.

Level 3 First-Lien Creditors Tap Adviser to Weigh Debt Options: A group of first-lien creditors to telecommunications firm Lumen Technologies Inc. is working with financial adviser Houlihan Lokey Inc. to explore options on a possible financing transaction with the company, according to people familiar with the situation.

World’s Empty Office Buildings Become Debt Time Bomb: In New York and London, owners of gleaming office towers are walking away from their debt rather than pouring good money after bad. The landlords of downtown San Francisco’s largest mall have abandoned it. A new Hong Kong skyscraper is only a quarter leased.

CarMax Sees Sales Declines Ease as It Works to Lower Prices - WSJ: Sales fell 17% in its recently ended quarter as rising interest rates kept used-car prices high and inflation continues to weigh on its customers’ budgets.

Oaktree, Sagent Win Bankruptcy Auction for Some Athenex Assets: Bankrupt Athenex Inc. will sell its pharmaceutical division’s assets in deals valued at about $41 million to creditor Oaktree Capital Management and Sagent Pharmaceuticals.

Social App IRL, Which Raised $200 Million, Shuts Down After CEO Misconduct Probe — The Information: Last year, the CEO of messaging app IRL repeatedly said it had 20 million monthly active users, who chatted about shared interests and planned real-world events together. Today, a spokesperson for the startup said an investigation by the board of directors concluded 95% of those users were “automated or from bots.”

Nevada regulator says Prime Trust can't meet all client withdrawals | The Block: The Nevada Financial Institutions Division said that crypto custodian Prime Trust could not meet all customer withdrawals.

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