Highway 55 Restaurants Bankruptcy: Landlord Rights

Little Mint, Inc., a North Carolina company that operates restaurants under the name “Highway 55,” filed for Chapter 11 bankruptcy on December 31, 2024, in the U.S. Bankruptcy Court for the Eastern District of North Carolina. This is likely to create much uncertainty for the landlords who own the buildings where these restaurants are located. In fact, Highway 55 has already filed a motion to reject (terminate early) some 24 leases, and more closings and rejections are likely to follow.

Major Shakeup in Federal Overtime Rules

Everything old is new again.  Bottom line up top, the salary threshold for the overtime exemptions applicable to executive, administrative, and professional employees is now back to $684 per week, $35,568 per year.  This was the rule established by the United States Department of Labor (DOL) prior to July 1, 2024.  As of November 15, 2024, it is the rule again.  

Benton Sawrey Re-Elected to NC State Senate

We are thrilled to announce that our very own Benton Sawrey has been re-elected to serve as the North Carolina State Senator for District 10. This resounding victory is a testament to his dedication to our community and his tireless efforts to represent the values and needs of Johnston County and beyond.

Collecting Rent from a Bankrupt Tenant:

Once a tenant files for bankruptcy, a lease becomes subject to the rules of bankruptcy, the tenant becomes largely untouchable, and you “get in line” according to your priority as a creditor. Bankruptcy triggers certain legal rights and obligations not included in the lease itself that a landlord must navigate to minimize loss.