Case 20-32181-KLP Doc 758 Filed 08/13/20 Entered 08/13/20 13:37:05 Desc Main Document Page 1 of 7
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Case 20-32181-KLP Doc 758 Filed 08/13/20 Entered 08/13/20 13:37:05 Desc Main Document Page 1 of 7 Stephen A. Metz (VA Bar No. 89738) Offit Kurman, P.A. 4800 Montgomery Lane, 9th Floor Bethesda, MD 20814 Tel.: (240) 507-1723 | Fax: (240) 507-1735 [email protected] Counsel to Simon Property Group, Inc. and affiliates UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF VIRGINIA RICHMOND DIVISION ------------------------------------------------------------ x : In re : Chapter 11 : CHINOS HOLDINGS, INC., et al., : Case No. 20–32181 (KLP) : Debtors.1 : (Jointly Administered) : ------------------------------------------------------------ x LIMITED OBJECTION AND RESERVATION OF RIGHTS OF SIMON PROPERTY GROUP, INC. TO DEBTORS’ NOTICE OF ASSUMPTION OR ASSIGNMENT AND CURE COSTS RELATING TO EXECUTORY CONTRACTS AND UNEXPIRED LEASES OF THE DEBTORS Simon Property Group, Inc. and its affiliates (“Simon”), by its undersigned counsel respectfully files this Limited Objection and Reservation of Rights with respect to the Debtors’ Notice of Assumption or Assignment and Cure Costs Relating to Executory Contracts and Unexpired Leases of the Debtors [Docket No. 667] (the “Cure Notice”), and in support thereof states as follows: 1. On May 4, 2020 (the “Petition Date”), Chinos Holdings, Inc. and its debtor affiliates (collectively, “Debtors”) filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code, 11 U.S.C. §101, et seq. (the “Bankruptcy Code”), thereby commencing Case No. 20- 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, as applicable, are Chinos Holdings, Inc. (3834); Chinos Intermediate Holdings A, Inc. (3301); Chinos Intermediate, Inc. (3871); Chinos Intermediate Holdings B, Inc. (3244); J. Crew Group, Inc. (4486); J. Crew Operating Corp. (0930); Grace Holmes, Inc. (1409); H.F.D. No. 55, Inc. (9438); J. Crew Inc. (6360); J. Crew International, Inc. (2712); J. Crew Virginia, Inc. (5626); Madewell Inc. (8609); J. Crew Brand Holdings, LLC (7625); J. Crew Brand Intermediate, LLC (3860); J. Crew Brand, LLC (1647); J. Crew Brand Corp. (1616); J. Crew Domestic Brand, LLC (8962); and J. Crew International Brand, LLC (7471). The Debtors’ corporate headquarters and service address is 225 Liberty St., New York, NY 10281. Case 20-32181-KLP Doc 758 Filed 08/13/20 Entered 08/13/20 13:37:05 Desc Main Document Page 2 of 7 32181-KLP (the “Bankruptcy Case”) in this Court. By Order Pursuant to Fed. R. Bankr. P. 1015(b)(I) Directing Joint Administration of Chapter 11 Cases, and (II) Granting Related Relief entered in the Bankruptcy Case on May 5, 2020 [Docket No. 7], the Bankruptcy Case has been consolidated for procedural purposes only with seventeen other affiliated cases under the above-captioned jointly administered case. The Debtor and its affiliated debtor entities remain in the control and possession of their respective assets and business as debtors in possession pursuant to sections 1107 and 1108 of the Bankruptcy Code. 2. As of the Petition Date, the Debtors were lessee under one hundred twenty-nine (129) leases of non- residential real property with Simon (individually, “Lease” or collectively, “Leases”). 3. On or about August 12, 2020, Simon and Debtors entered into a tentative deal that is conditioned upon, and shall become effective upon the later of (i) execution of a Master Agreement by both parties, and (ii) the entry of a final order by the Bankruptcy Court approving the assumption and assignment of each and every one of the Leases, or a final order by the Bankruptcy Court approving a Plan and the assumption of Leases. 4. In the instance that the Debtors do not meet such conditions identified in paragraph 3 herein, Simon reserves its rights with regards to cure amounts for each Lease as set forth on Exhibit “A”, attached hereto, its attorney fees and any charges accrued under the Leases, but not yet billed, including but not limited to common area maintenance, real estate taxes, utilities, overage rent and/or percent rent. 5. Simon reserves the right to supplement this Limited Objection prior to a final determination by the Court regarding assumption and assignment of the Leases, including the amount and payment required for purposes of cure under Section 365, as rent, attorneys’ fees and other charges continue to accrue. 6. To the extent that it does not conflict with anything stated herein, Simon Property Group, Inc. joins in the objections filed by Debtors’ other landlords. 2 Case 20-32181-KLP Doc 758 Filed 08/13/20 Entered 08/13/20 13:37:05 Desc Main Document Page 3 of 7 Wherefore, Simon hereby objects to the Cure Notice and reserves all rights and remedies in the instance the Debtors plan is not confirmed and Debtors fail to assume and assign the Leases. In such instance, Simon respectfully requests that the Court enter an order requiring Debtors’ payment, including, but not limited to, the amounts required to cure outstanding defaults under the Lease, reasonable attorneys’ fees incurred in connection with this Limited Objection, and other charges that continue to accrue. Dated: August 13, 2020 /s/ Stephen A. Metz Stephen A. Metz (VA Bar No. 89738) Offit Kurman, P.A. 4800 Montgomery Lane, 9th Floor Bethesda, MD 20814 Tel.: (240) 507-1723 | Fax: (240) 507-1735 [email protected] Counsel to Simon Property Group, Inc. and affiliates and /s/ Joyce A. Kuhns Joyce A. Kuhns Esq. (Admitted Pro Hac Vice) Offit Kurman, P.A. 300 East Lombard Street, Suite 2010 Baltimore, MD 21202 Tel.: (410) 209-6463 [email protected] Counsel to Simon Property Group, Inc. and affiliates CERTIFICATE OF SERVICE THE UNDERSIGNED HEREBY CERTIFIES that, on this 13th day of August, 2020, he caused the foregoing to be electronically filed with the Clerk of the Court using the ECF system that will send notification of such filing to all parties receiving notice in this case. /s/ Stephen A. Metz Stephen A. Metz 3 Case 20-32181-KLP Doc 758 Filed 08/13/20 Entered 08/13/20 13:37:05 Desc Main Document Page 4 of 7 EXHIBIT A Project # Property Lease Lease End Unit Store # Total Cure Amount 5350 ABQ Uptown J. Crew 1/31/2023 10N 0789 $ 22,357.61 7848 Allen Premium Outlets J. Crew Factory Store 1/31/2029 0644A 0062 $ 45,614.75 5201 Arundel Mills J. Crew 1/31/2021 480 0090 $ 32,368.04 145 Barton Creek Square J. Crew 1/31/2021 H06 0686 $ 36,893.20 7961 Birch Run Premium Outlets J. Crew Factory Store 1/31/2020 V026 0009 $ 25,813.16 5240 Briarwood Mall J. Crew 1/31/2021 G116 0566 $ 10,154.41 4822 Burlington Mall J. Crew 1/31/2021 1200 0719 $ 88,112.40 4822 Burlington Mall Madewell 1/31/2025 1042A 1209 $ 58,268.00 7846 Camarillo Premium Outlets J. Crew Factory Store 1/31/2021 744 0065 $ 43,503.08 4919 Cape Cod Mall J. Crew 1/31/2021 N155B 0574 $ (4,547.72) 7883 Carolina Premium Outlets J. Crew Factory Store 2/28/2022 1010 0113 $ 26,641.91 8041 Charlotte Premium Outlets J. Crew Factory Store 1/31/2025 840 0148 $ 36,394.96 7849 Chicago Premium Outlets J. Crew Factory Store 1/31/2026 1360 0055 $ 78,489.04 7924 Cincinnati Premium Outlets J. Crew Factory Store 1/31/2020 852 0098 $ 25,289.78 8057 Clarksburg Premium Outlets J. Crew Factory Store 1/31/2028 536 1033 $ 35,981.36 7850 Clinton Crossing Prem Outlets J. Crew Factory Store 1/31/2025 0300A 0064 $ 62,162.98 4696 Coconut Point J. Crew 1/31/2021 M03 0690 $ 36,776.63 5204 Colorado Mills J. Crew 1/31/2025 247 0158 $ 19,915.91 5207 Concord Mills J. Crew 1/31/2025 324A 0157 $ 25,125.03 7611 Copley Place J. Crew 1/31/2021 F008 0790 $ 79,076.02 7611 Copley Place J. Crew Men's 1/31/2023 J015B 0764 $ 31,818.66 7611 Copley Place The Ludlow Shop 3/31/2021 J011 0542 $ 30,007.98 5243 Del Amo Fashion Center J. Crew 1/31/2026 418 0824 $ 7,688.83 5243 Del Amo Fashion Center Madewell 1/31/2026 424 1236 $ 6,330.61 7853 Desert Hills Premium Outlets J. Crew Factory Store 1/31/2021 330 0031 $ 48,869.95 7963 Ellenton Premium Outlets J. Crew Factory Store 1/31/2021 100 0070 $ 26,754.92 1116 Fashion Ctr at Pentagon City J. Crew 3/31/2020 0F10B 601 $ 85,989.25 2111 Fashion Mall at Keystone J. Crew 1/31/2021 158 0527 $ 89,592.61 2111 Fashion Mall at Keystone Madewell 1/31/2023 150C 0263 $ 33,820.61 4645 Fashion Valley Madewell 1/31/2024 820 0276 $ 52,095.94 7965 Gaffney Outlet Marketplace J. Crew Factory Store 1/31/2020 500 0094 $ 21,623.34 7857 Gilroy Premium Outlets J. Crew Factory Store 1/31/2020 C210 0025 $ 45,903.25 8038 Gloucester Premium Outlets J. Crew Factory Store 1/31/2026 830 0185 $ 43,093.35 7956 Grand Prairie Premium Outlets J. Crew Factory Store 1/31/2023 535 0099 $ (3,846.92) Project # Property Lease Lease End Unit Store # Total Cure Amount 5211 Grapevine Mills J. Crew Factory Store 1/31/2021 202 0075 $ 29,819.04 5250 Great Mall J. Crew 1/31/2021 528 0127 $ 46,534.99 7967 Grove City Premium Outlets J. Crew Factory Store 1/31/2025 1005 0045 $ 36,419.89 7968 Gulfport Premium Outlets J. Crew Factory Store 1/31/2020 605 0095 $ 20,195.33 4 Case 20-32181-KLP Doc 758 Filed 08/13/20 Entered 08/13/20 13:37:05 Desc Main Document Page 5 of 7 7969 Hagerstown Premium Outlets J.