Running a company is never easy, and 2020 was even more challenging, presenting business owners with an unprecedented set of circumstances. The COVID-19 pandemic caused major disruptions to the American economy, with the unemployment rate peaking at 14.7% in April. While unemployment dropped to 6.7% in November, it is still more than 3 percentage points higher than it was prior to the escalation of the pandemic.
With this economic crunch, many struggling companies were forced to seek bankruptcy protection or cease operations altogether. These businesses will join a list of once-prominent brands that, for one reason or another (long before the pandemic), lost profitability and shut down in the past 10 years.
To determine the brands that disappeared between 2011 and 2020, 24/7 Wall St. reviewed press releases, financial filings, and other news sources to find the major corporations that either went completely out of business or ceased the bulk of their operations.
Many of the companies on this list failed to adapt to changing market forces and lost profits because of it. Retailers that were once successful saw online shopping cut into their sales, even before the pandemic required social distancing.
Though virtually every business faced pandemic-related struggles, few sectors had a harder time getting through 2020 than restaurants. With restrictions on indoor dining and supply chain issues, as well as having to temporarily close due to local health measures, more than 100,000 eateries have closed their doors for good. According to the National Restaurant Association, these closures will affect around one out of every six restaurants in the country. Among these casualties are world famous restaurants all across the country. These are the saddest restaurant closings of 2020.