In a recent article by Bisnow, Aleida Martinez Molina, Chair of the Firm’s Insolvency and Creditors’ Rights Practice Group, commented on the outlook for retail bankruptcies in South Florida. Despite the coronavirus pandemic, the state has nearly 1,000 people per day moving in state. That, plus the lack of a state income tax, has contributed to the boom in real estate.
“South Florida may be insulated more than other states because of the population influx since the pandemic began and new vaccines may also soften the economic blow,” said Aleida. She noted that this October, Chapter 11 reorganization filings in South Florida were up 70% compared to the year prior.
“Bankruptcy is a lagging economic indicator,” she said. “The spring closures and downturn will likely not appear as actual new bankruptcy or reorganization filings until the end of 2020 or, more likely, the first quarter of 2021.”
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