Skip to main content
Bernstein Burkley
  • Practice Areas
    • Overview
    • Bankruptcy & Restructuring
    • Business and Corporate Transactions
    • Creditors’ Rights
    • Litigation
    • Oil & Gas and Energy
    • Real Estate
  • Our Attorneys
  • About Us
    • Our Approach
    • History
    • Law Lists
    • Professional Memberships
    • Careers
  • Resources
    • Bernstein’s Dictionary of Bankruptcy Terminology
    • Links
    • Five Minute Legal Master videos
    • Blog
    • Legal Publications
  • News
    • Cases Archive
    • Firm News
    • In the News
    • Industry News
  • Contact
CALL - 412 456 8100
Connect
  • Facebook
  • Twitter
  • LinkedIn
Bernstein Burkley
  • Practice Areas
    • Overview
    • Bankruptcy & Restructuring
    • Business and Corporate Transactions
    • Creditors’ Rights
    • Litigation
    • Oil & Gas and Energy
    • Real Estate
  • Our Attorneys
  • About Us
    • Our Approach
    • History
    • Law Lists
    • Professional Memberships
    • Careers
  • Resources
    • Bernstein’s Dictionary of Bankruptcy Terminology
    • Links
    • Five Minute Legal Master videos
    • Blog
    • Legal Publications
  • News
    • Cases Archive
    • Firm News
    • In the News
    • Industry News
  • Contact
Cases

Glosser Bros., Inc.

Representation: Crown American Corporation

Bankruptcy – Western District of Pennsylvania

Situation: Glosser Bros., Inc. operated more than 70 discount department stores in Pennsylvania and four surrounding states. Because of debts incurred from a leveraged buy-out and a retailing downturn, Glosser Bros., Inc. filed a Chapter 11 petition.

Crown American Corporation, holding nine of Glosser Bros., Inc.’s mall store leases, hired Bernstein and Bernstein, P.C. to protect its interests as landlord and major creditor.

Just before and after filing, the debtor closed almost 40 stores but kept open eight of the Crown American Corp. stores which were among the most profitable and possibly the most valuable leases in the chain. Crown American Corp. became concerned that a potential Glosser Bros., Inc. buyer would change the character of the stores and interfere with Crown American Corp. mall tenant mixes.

Action: Bernstein and Bernstein, P.C. assisted Crown American Corp. in developing a strategy for the company to buy Glosser Bros., Inc. by paying creditors more than they were originally offered, allowing Crown American Corp. to continue existing operations and protect its shopping centers. Substantial litigation and maneuvers followed, including litigation over the assumption of leases, as well as Crown’s requests for permission to file its plan.

While Glosser Bros., Inc. still maintained the exclusive right to propose a plan of reorganization, Bernstein and Bernstein, P.C. and its client utilized an aggressive approach. Filing a motion to have the court terminate the debtor’s exclusive right would have allowed Crown American Corp. to submit its own plan. Second, writing to all 2700 creditors, outlining reasons for opposing the debtor’s plan and urging them to vote it down, which would have allowed Crown to file its plan.

Crown American Corp. posted a $28 million letter of credit with the creditors’ committee as proof of intent to pursue its plan. The strategy developed by Bernstein and Bernstein, P.C. and Crown American Corp. resulted in: the third party buyer agreeing to certain conditions required by Crown American Corp. controlling the manner in which Glosser Bros., Inc. would continue operations in the Crown American Corp. malls; creditors receiving more than the buyer’s original offer; and Glosser Bros., Inc. assuming major Crown American Corp. leases, curing all defaults and delinquencies.

Back to Top
  • Overview
  • Allegheny Motel Inn, Inc.
  • Alpha Housing
  • Arter & Hadden, LLP
  • Benjamin Coal Company
  • Brockway
  • Brownsville General Hospital
  • Cambria Mills Coal Company
  • Criminal Demolition
  • David Weis Jewelers
  • Debois Investment Group
  • Failure to Satisfy Mortgage
  • Ferrell Prior
  • Glosser Bros., Inc.
  • Guaranty for a Friend
  • Hercules Service Corporation
  • I. D. Craig Service Corp.
  • Insulfoams, Inc.
  • Italian Oven, Inc.
  • K. F. Dairies
  • Large International Electrical Supply Distributor
  • Liberty Electronics
  • Major Supplier of Electronic Components
  • Medical Malpractice Verdict
  • MHF Trucking
  • Pittsburgh Press Club
  • Printing equipment recovery
  • Queen City Distributing
  • Ready Mix Concrete Company
  • Securities Fraud Class Action
  • Security Systems Supplier
  • Shotrock, Inc.
  • Spirit Harley-Davidson, Inc.
  • Star-Tron Technology, Inc.
  • TJX Companies (Ames Dept. Stores)
  • Uniflow Manufacturing Co. (Koldraft)
  • Van Huffel Tube Co.
  • Various Personal Injury Claimants
  • Yobe Electric
  • First Century Corporation
  • Consumer Finance Corporation
  • Hathaway and G & K Bakery (Trustee)
Bernstein Burkley

Copyright © 2023 Bernstein-Burkley

best lawyers 2022lawyer of the year Harry Greenfield
ones to watch best lawyers 2022

 

 

Top Bankruptcy Attorney in Cleveland

Links
  • Disclaimer
  • Knowledge Base
  • Privacy Center
  • Site Map

Bernstein-Burkley, P.C.

Phone: 412.456.8100

Fax: 412.456.8135

Email: info@bernsteinlaw.com

Connect