Robert M. Marino, Esq. VSB #26076 

Redmon Peyton & Braswell, LLP 

510 King Street, Suite 301 

Alexandria, VA 22314 

703-684-2000 

rmmarino@rpb-law.com

Counsel for the CaaStle, Inc. 

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE EASTERN DISTRICT OF VIRGINIA 

Alexandria Division 

 

 ) 

In re: ) Chapter 11 

CHINOS HOLDINGS, INC. et al., ) Case No. 20-32181-KLP 

Debtors.1

 ) (Jointly Administered) 

 ) 

 ) 

CAASTLE INC., ) 

 Movant, ) 

v. ) Relief from Stay 

MADEWELL INC., ) 

 Respondent. ) 

 ) 

ORDER GRANTING CAASTLE INC. RELIEF FROM AUTOMATIC STAY

THIS MATTER came on before the Court upon the Motion for Relief From Automatic Stay

(Docket Entry No. ____)(the “Motion”) filed by CaaStle Inc. f/k/a Gwynnie Bee Inc. (“CaaStle”), a 

sublandlord and creditor herein, seeking an order granting relief from the automatic stay to enforce all of 

his contractual and state law rights to possession with respect to certain leased commercial real property 

more particularly described below; and it 

APPEARING TO THE COURT that CaaStle, as tenant, leases commercial office space from 

Factory Owners LLC in a building located at 30-30 47th Avenue, Long Island City, New York (the 

“Building), which includes a portion of the fourth floor of the Building consisting of approximately 6,306 

square feet of space known as Suite 460 (“Suite 460”), a portion of the fifth floor of the Building 

consisting of approximately 12,702 square feet of space known as Suite 540 (“Suite 540”), and an 

additional portion of the fourth floor of the Building consisting of approximately 1,055 rentable square 

 

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. 

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feet space known as Suite 470 (“Suite 470”) (collectively, the “Premises”), pursuant to the terms of an 

Agreement of Lease dated May 15, 2015, by and between Factory, as landlord, and CaaStle, as tenant, as 

amended by (i) a First Amendment to Lease dated March 15, 2016, and (ii) a Second Amendment to Lease 

dated June 28, 2017 (collectively, the “Prime Lease”); and that the term of the Prime Lease expired by its 

own terms on May 31, 2020, and has not been extended; and it 

FURTHER APPEARING TO THE COURT that pursuant to the terms of a Sublease dated 

September 19, 2020 (the “Sublease”), by and between CaaStle, as sublandlord, and Madewell Inc. 

(“Madewell”), as subtenant, Madewell agreed to sublease Suites 460 and 540 (collectively, the 

“Subleased Premises”) from CaaStle; that Madewell was obligated to pay CaaStle monthly base rent of 

$47,520 (the “Base Rent”) and a variable monthly amount as additional rent to pay for electricity and any 

other operating expenses related to the operation of the Subleased Premises (the “Additional Rent”); that 

all rent was due and payable on the fifth (5th) day of each calendar month; that CaaStle was also entitled 

to collect a late charge of five percent (5%) plus additional interest for any rent not timely paid; and that 

CaaStle is presently holding a security deposit from Madewell in the amount of $95,040 (the “Security 

Deposit”) as security for Madewell’s performance of the terms, conditions and provisions of the Sublease; 

and it 

FURTHER APPEARING TO THE COURT that the term of the Sublease commenced on 

September 15, 2019 and expired by its own terms—contemporaneously with the expiration of the Prime 

Lease—on May 31, 2020 (the “Expiration Date”); that section 21 of the Sublease provides that if the 

subtenant remains in possession of the Subleased Premises after the Expiration Date, then (i) subtenant 

shall be deemed a tenant at will, (ii) subtenant shall continue to pay Base Rent and Additional Rent at an 

increased rate calculated at 150% of the original rates (the “Holdover Rate”), (iii) there shall be no 

renewal or extension of the Sublease by operation of law, (iv) the tenancy at will may be terminated upon 

thirty days written notice from the sublandlord, and (v) subtenant shall be liable to sublandlord for all 

damages suffered and reasonable expenses incurred on account of such holdover; and that, following the 

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Expiration Date, subtenant is required to surrender possession of, and remove all property situated in, the 

Subleased Premises; and it 

FURTHER APPEARING TO THE COURT that on May 4, 2020 (the “Petition Date”), Madewell 

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. 20-32191-KLP (the “Bankruptcy 

Case”) in this Court; and that by Order entered in the Bankruptcy Case on May 5, 2020 (Docket No. 7), 

the Bankruptcy Case has been consolidated for procedural purposes with sixteen other affiliated cases 

under the above-captioned jointly administered case number; and that the commencement of the 

Bankruptcy Case operated to stay further efforts by CaaStle to terminate Madewell’s tenancy at will 

under the expired Sublease and enforce its rights to possession; and it 

FURTHER APPEARING TO THE COURT that prior to the Petition Date, Madewell was in 

default under the Sublease for failure to pay the Base Rent due for March and April 2020 ($95,040) and 

the Additional Rent due for January through April 2020 ($6,893), for a total of $101,933 (the “PrePetition Balance”); that the commencement of the Bankruptcy Case also prevented CaaStle from applying 

the Security Deposit against the Pre-Petition Balance; and there is no equity in the Security Deposit 

because its value is exceeded by the amount of the Pre-Petition Balance; and it 

FURTHER APPEARING TO THE COURT that, pursuant to the provisions of 11 U.S.C. 

§362(b)(10), the automatic stay does not apply because the Sublease expired by its own terms on the 

Expiration Date; and that cause otherwise exists pursuant to 11 U.S.C. §362(d)(1) to grant CaaStle relief 

from the automatic stay to exercise its contractual and state law rights to possession with respect to the 

Subleased Premises because (i) the Sublease has expired by its own terms, and (ii) the Debtor may not 

assume the Sublease under the provisions of 11 U.S.C. §365(b); and it 

FURTHER APPEARING TO THE COURT that proper notice has been provided with respect to 

the Motion; it is, therefore 

ORDERED, that the Motion be, and its hereby is, GRANTED; and that the automatic stay 

imposed by 11 U.S.C. §362(a) is hereby lifted and terminated so as to permit CaaStle to exercise its 

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contractual and state law rights to possession with respect to the Subleased Premises, including its rights 

to terminate the Debtor’s holdover tenancy, take possession of the Subleased Premises, remove any 

remaining personal property therefrom, and apply the Security Deposit to pay down the Pre-Petition 

Balance; and that the stay imposed by Federal Rule of Bankruptcy Procedure 4001(a)(3) is waived so that 

CaaStle may immediately pursue his rights upon entry of this Order. 

Dated: 

 

Honorable Keith L. Phillips 

United States Bankruptcy Judge 

I ask for this: 

/s/ Robert M. Marino 

Robert M. Marino, Esq. VSB#26076 

REDMON, PEYTON & BRASWELL, LLP 

510 King Street, Suite 301 

Alexandria, VA 22314 

Phone: 703-684-2000 

Fax: 703-684-5109 

email: rmmarino@rpb-law.com

Counsel for CaaStle Inc. 

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