Though controversial, cannabis[1] has steadily grown into a booming industry. Despite this rapid growth and the legalization of cannabis in numerous states[2], cannabis is still classified as a Schedule I drug under the Controlled Substances Act (CSA).
Sarah Banda U.S. Bankruptcy Court (N.D. Ga.); Atlanta On May 15th, JCPenney announced that the company was filing for chapter 11 relief. Another in a trend of major retailers filing for bankruptcy. JCPenney's announcement was expected, as forced closures in the pandemic exacerbated the company's pre-COVID financial problems.1 However, what raised some eyebrows is the company's plan to spin its properties into a real estate investment trust (REIT) as a part of its proposal to emerge from bankruptcy.
In the midst of the unprecedented global health challenge presented by the spread of the coronavirus (COVID-19), businesses will almost certainly face pervasive disruptions to operations as the economy experiences widespread financial distress. In light of the dramatic and continuing economic downturn, and with the certainty that almost every business sector has been or will be affected, it is imperative that each company have a plan for handling relationships with companies in financial distress.