These are the 10 big companies that went bankrupt due to COVID
Last year was tough for businesses, but for some businesses it was even more difficult. Low or no consumer demand, spending cuts and home orders have crushed many businesses.
Even after the economy slowly began to reopen, social distancing standards have driven most consumers away from markets. This has led to the bankruptcy of many companies, including big names.
Here are 10 big companies that have gone bankrupt due to COVID-19 pandemic Last year.
Ten companies that went bankrupt due to COVID-19
Last year, companies in nearly every industry, including clothing retailers, travel agencies, oil producers and more, filed for Chapter 11 bankruptcy. For our list of top 10 companies who went bankrupt due to the COVID-19 pandemic, we only considered popular household names.
A point to note is that the deposit of bankruptcy does not inherently mean that the business is going to close.
Rather, it is a financial restructuring. Here are 10 major companies that went bankrupt due to the COVID-19 pandemic last year (the list is in no particular order):
1. NPC International Inc.
This business might not be a household name, but it has a domestic connection. NPC International is the largest franchise of Pizza Hut restaurants. He opened the first Pizza Hut in 1962. NPC operates over 1,200 Pizza Huts and over 385 Wendy’s stores across the United States. It is the second-largest franchise operator in the United States NPC deposit for the Chapter 11 bankruptcy in July.
Hertz struggled after the drop in travel due to last year’s pandemic. The company’s used car sales also fell significantly.
This forced the car rental company to file for bankruptcy on May 22. Hertz had about $ 20 billion in debt last year. The company is working to sell most of its fleet to pay off its creditors.
3. CMX theaters
CMX Cinemas filed for Chapter 11 bankruptcy on April 25, 2020. This chain of theaters with dining options is owned by Cinemex Holdings.
The company got court approval to sell the channel to an affiliate and pay up to 15% of unsecured debts. CMX Cinemas entered the US market in April 2017 and quickly ranked among the top 10 tours in the North American market.
4. Rubie’s Costume Company
The company that makes costumes, wigs and other party gear filed for bankruptcy on April 30, 2020. Rubie’s claims to be the world’s largest Halloween costume designer and maker.
This company got a new owner after its Chapter 11 bankruptcy and becomes Rubies II LLC. Previously it was a family business that has been around for about seven decades.
5. Brooks Brothers
Founded in 1818, this classic costume brand filed for bankruptcy on July 8. In August, a joint venture of Simon Property Group and Authentic Brands Group obtained court approval to acquire Brooks brothers for $ 325 million.
The new owners of the centuries-old brand have promised to operate at least 125 Brooks Brothers stores. Even before the pandemic, Brooks Brothers was considering a potential sale.
6. J. Crew
This preppy retailer filed for bankruptcy on May 4. J Crew has already struggled in recent years due to declining mall traffic and the rise of online retailers.
The pandemic has made it even more difficult for the retailer to meet its debt commitments. After filing for bankruptcy, all of J. Crew’s lenders agreed to convert approximately $ 1.7 billion of the company’s debt into equity.
7. JC Penney
Founded in 1902, this retailer filed for bankruptcy in May 2020. The pandemic was not the only reason the retailer filed for bankruptcy. JC Penney was already struggling due to competition from Amazon and Walmart.
Following the bankruptcy, the company entered into an agreement to sell most of its retail and operating assets to Brookfield Asset Management and Simon Property Group.
8. Gold gymnasium
This company filed for Chapter 11 bankruptcy on May 4, 2020. Gold’s Gym owns and operates more than 700 gyms in the United States and around the world.
Gold’s Gym International was auctioned off in a court-approved auction process to Berlin-based RSG Group for $ 100 million. RSG Group owns the ultra-popular McFIT brand in Europe.
9. Chesapeake Energy
Massive reduction in energy demand following last year’s pandemic forced this Oklahoma City-based company to file an application Chapter 11 bankruptcy in June 2020. The company had more than $ 9 billion in debt and $ 1 billion in maturities and interest.
Chesapeake emerged from bankruptcy earlier this year after removing $ 7.7 billion in debt from its balance sheet. The company will now focus more on natural gas than on shale.
10. Virgin Atlantic
Virgin Atlantic filed for Chapter 15 protection on August 4 in New York City. The company is 49% owned by Delta.
Before declaring bankruptcy, Richard bransonThe firm’s company tried to negotiate a bailout deal with the UK government and a private bailout, but things didn’t work out.
This item first appeared on Entrepreneur.