American Brands That Might Not Survive the Coronavirus
Businesses of all sizes in America are facing an unprecedented crisis as a result of the COVID-19 pandemic. A U.S. Chamber of Commerce report found that 43% of small businesses believe they will not survive six months in these economic conditions. Large businesses are a mixed bag. Some are flush with cash and able to weather a long-term financial downturn, while other major American brands are saddled with massive debt loads and, without a significant change in conditions, may be forced to close their doors forever.
24/7 Wall St. reviewed corporate filings and industry publications to determine the American brands that might not survive the coronavirus crisis.
While every part of the American economy has been impacted by the pandemic, some industries have suffered far greater damage. Brick-and-mortar retailers, theaters, and companies that rely on live events have seen their revenues decimated in the wake of COVID-19. These are the U.S. industries being devastated by the coronavirus.
Companies are turning to a range of different strategies to survive the pandemic. Many retailers are offering curbside pickup, while other shuttered businesses are selling discounted gift cards for a quick infusion of cash. Unfortunately, one of the most common strategies is to furlough or lay off workers to save on labor costs. Workers all across the country have been affected — the U.S. unemployment rate is up to 14.7%. At least 8.5% of workers filed for unemployment since mid-March in every state. This is every state’s unemployment claims since COVID-19 shut the economy down.
Correction: A previous version of this story incorrectly stated that StubHub was considering requesting a government bailout. Rather, the National Association of Ticket Brokers — an organization that does not include StubHub — made a statement to that effect.