The economic fallout associated with the COVID-19 pandemic has proved too much for many American businesses to absorb.
Small businesses across the country were forced to shut down in order to help contain the novel coronavirus. According to a recent report from online review platform Yelp, as many as 60% of businesses that use their platform may never reopen. These are the small businesses that need the most help during the pandemic.
Larger companies were by no means immune. There was a nearly 50% jump in Chapter 11 bankruptcy filings in May 2020 compared to a year prior.
Larger businesses often decide to seek bankruptcy protection to restructure their debt and turn their business around. While some succeed and exit bankruptcy better positioned to compete in their industry, others do not and have to liquidate. 24/7 Wall St. reviewed some of the high profile companies that filed for bankruptcy in recent months to determine which American businesses may not survive coronavirus.
These companies are not ranked in a particular order, but are either facing an uncertain future after having recently declared bankruptcy, or are in the process of downsizing considerably. Some of the companies have already made the decision to liquidate all assets.
Many of the companies on this list are retailers that depend on sales in their brick-and-mortar stores. Often, these companies were in financial trouble even before the pandemic as competition from e-commerce has resulted in substantial sales declines and undercut profitability for more traditional retailers. For these businesses, the coronavirus pandemic greatly exacerbated existing problems.
While the bankruptcies on this list may spell the end of some iconic American brands, mass closures and liquidations are also putting millions of Americans out of work. Decreased economic activity during the pandemic, and the resulting bankruptcies of major companies, have led to the worst unemployment crisis this country has faced in modern history. Here is a look at the cities with the worst unemployment crisis right now.