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Default Notices Are Piling Up for Retailers Unable to Pay Rent

  • Thousands of letters sent to ailing merchants as patience ends
  • Failure to pay could trigger a renewed wave of bankruptcies
A closed Modell’s store closure due to coronavirus in New York City.

A closed Modell’s store closure due to coronavirus in New York City.

Photographer: Bill Tompkins/Getty Images

Retail landlords are sending out thousands of default notices to tenants, a situation that could tip already-ailing retailers into bankruptcy or total collapse.

Department stores, restaurants, apparel merchants and specialty chains have been getting the notices as property owners who’ve gone unpaid for as long as three months lose patience, according to people with knowledge of the matter and court filings.