Gavin/Solmonese

05/21/2026

Chapter 11 is a powerful tool. It can shed debt, renegotiate leases, reject unprofitable contracts, and buy time for a business to reset. What it can't do is fix a business model that doesn't work.

What made the Spirit situation so unusual wasn't the bankruptcy itself. It was the combination of factors that made the bankruptcy inevitable, and the degree to which at least some of those factors were self-inflicted.

Read our full take here:

Spirit Airlines filed Chapter 11 twice and stopped flying in May 2026. An examination of what the model got right, what it got wrong, and why Chapter 11 couldn't fix it.

05/14/2026

What does 47 years of American bankruptcy practice actually look like from the inside?

Our founder wrote a retrospective covering the moments that shaped the modern restructuring profession: the 1978 Code that changed everything, the creditor-driven overhaul of 2005, the cases that set templates still in use today, and the structural shifts defining practice right now.

If you work in restructuring, distressed investing, or commercial lending, this is worth a read: https://gavinsolmonese.com/insights/history-of-bankruptcy/.

05/14/2026

What does 47 years of American bankruptcy practice actually look like from the inside?

Our founder Ted Gavin wrote a retrospective covering the moments that shaped the modern restructuring profession: the 1978 Code that changed everything, the creditor-driven overhaul of 2005, the cases that set templates still in use today, and the structural shifts defining practice right now.

If you work in restructuring, distressed investing, or commercial lending, this is worth a read: https://gavinsolmonese.com/insights/history-of-bankruptcy/

05/04/2026

Most people think mediation in bankruptcy is about finding a number in the middle.
It's not. At least, that's not where it does its best work.

The real value of mediation is in separating what a party is saying they need versus what they actually need.

A creditor objecting to plan confirmation may really be concerned about a specific release provision affecting a related guarantee. A landlord holding out on a lease assumption may care less about the cure amount than about whether the reorganized debtor can perform going forward.

When you surface what a party actually needs, you can often find solutions that would never emerge from a contested hearing.

Ted Gavin breaks it down in our latest blog: https://gavinsolmonese.com/insights/what-mediation-actually-does-in-bankruptcy/

Ted Gavin explains how separating interests from positions creates outcomes in bankruptcy that litigation cannot.

04/15/2026

Lycra’s Chapter 11 cuts $1.2B in debt and stabilizes the balance sheet.

On paper, that sounds like a win, but it makes us wonder: are they actually fixing the business, or just fixing the math?

We see this a lot. The debt gets cleaned up, ownership shifts, things look better financially… but the core business does not really change. The can gets kicked down the road.
They still find themselves with the same strategy, pressures and challenges. The same dented, road-worn can.

Bankruptcy can fix a balance sheet but it doesn’t fix a business.

The harder part is stepping back and asking what actually needs to change.

Read our take here:

Lycra’s Chapter 11 filing highlights a common restructuring problem: fixing the balance sheet without changing the business. An analysis of what’s missing.

04/07/2026

Chapter 11 gives distressed companies breathing room. But breathing room only works when there's trust.

When conflicts of interest, governance breakdowns, or stakeholder disputes take hold, even well-intentioned restructurings can stall or fail entirely.

Independent fiduciary oversight changes that dynamic. It restores credibility, grounds decisions in fact rather than bias, and creates the forward momentum a restructuring needs to actually succeed.

Without it, Chapter 11 risks becoming a delay mechanism, not a solution.

Read our full post here:

Learn the role of a fiduciary in Chapter 11 bankruptcy, when independent oversight is needed, and how fiduciary services help stabilize complex restructuring situations.

04/02/2026

As pandemic-era loans reach maturity, borrowers, lenders, and advisors are navigating a more complex landscape.

Higher rates and uneven property fundamentals are colliding in ways that will define the next cycle of restructuring and litigation.

Understanding how those pressures develop will be critical as the next wave of pandemic-era loans reaches maturity.

Read our full perspective on the overall landscape in our latest blog:

03/24/2026

Leadership restructuring is not simply about replacing an executive. It is about whether the current structure supports the company’s needs today.

The useful question is not who should be replaced. It’s actually whether the leadership model still matches the business.

Roles that worked during a growth phase often don't hold up under tighter liquidity, increased stakeholder scrutiny, or more complex operations. That's not a people problem. It's a structural one.

Some patterns worth paying attention to:
- Targets are missed without a clear explanation
- Decision-making slows or becomes political
- Too much authority sits with one person
- Lenders, boards, or investors are losing confidence

These signals usually point to misalignment at the top as opposed to a gap in one seat.

Leadership restructuring isn't a sign of failure. It's a willingness to adapt the organization to current realities. Read our full perspective here:

Leadership restructuring explained. Learn when leadership structure no longer fits the business and how to approach change effectively.

03/19/2026

AI will cause bankruptcies not because it's transformative, but because capital structures assume stability.

The businesses most at risk aren't failing ones. They're mid-market companies with real customers and moderate leverage, whose pricing is quietly tied to outputs AI now replicates for a fraction of the cost.

The billable base shrinks. The fixed obligations don't.

That gap is where distress starts. Ted wrote about the patterns we expect to see. Read his take here: https://gavinsolmonese.com/insights/ai-will-cause-bankruptcies/

03/05/2026

We’re proud to share that Ted Gavin has been appointed to the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority, the public ferry system that provides essential transportation between Cape Cod and the islands of Martha’s Vineyard and Nantucket.

Throughout his career, Gavin has helped boards, management teams, and stakeholders address difficult financial realities while preserving long-term value. His advisory work frequently focuses on organizations operating in highly scrutinized environments where financial transparency, disciplined decision-making, and clear governance are essential.

Please join us in congratulating Ted on this appointment! We’re excited to see him bring his deep experience in navigating complex operational and financial environments to this role.

Read the full press release here: https://gavinsolmonese.com/news/ted-gavin-appointed-to-board-of-directors-of-the-steamship-authority/

03/02/2026

Eddie Bauer’s Chapter 11 filing isn’t the end of the brand.

It applies only to the North American brick-and-mortar store operator, not e-commerce or international licensees.

That distinction matters.

Over time, scalable channels like online and wholesale were separated from the store fleet. What’s left in the filing is the highest fixed-cost part of the business: leases, occupancy costs, staffing, and inventory risk.

This is a sale-driven Chapter 11, not a traditional reorganization. Management is testing whether the physical footprint can support itself under new ownership.

Stores may stay open. The brand survives. The question is whether brick-and-mortar does.
In retail restructurings, structure drives outcome.

Read more here:

Eddie Bauer Chapter 11 bankruptcy filing explained. Why the North American retail operator filed and what it means for stores and creditors.