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- Retail restructuring experts say what the changes ultimately boil down to is a lack of time to turn around a struggling business once a Chapter 11 bankruptcy filing is made. The law now allows a maximum of 210 days for retailers to inform landlords if they are going to renew leases or close doors.
Before the 2005 changes, it was not uncommon for a retailer to be in bankruptcy for 18 months or so, but now that's not possible. Which means, Chapter 11 is now turning into liquidation much more frequently.