Retailers were already struggling and are now supporting the weight of the impact of the coronavirus. But a major gym brand and a major car rental company recently filed for bankruptcy.
However, many other brands that filed for bankruptcy with the intention of staying in business have not survived. Here are some U.S. companies that applied in May:
The bankruptcy protection filing of Chapter 11 will help him “emerge stronger and ready to grow,” the statement continued.
The 55-year-old company plans to go out of bankruptcy by August and has declared that “it will not go anywhere”. Gold triggered 30 positions in April, but does not intend to permanently close other gyms.
The company has been in business since 1918, when it opened a shop with a dozen Ford Model Ts. Hertz survived the Great Depression, the near-total setback of American car production in World War II and the numerous oil price shocks.
By filing for bankruptcy, the car rental company claims that it intends to remain in business while reorganizing its debts so that it can emerge financially healthier.
“The impact of Covid-19 on travel demand has been sudden and dramatic, causing a sharp drop in the company’s revenue and future bookings,” the company said in a statement, noting that “uncertainty remains as to when Revenue will return and when the automotive market reopens completely for sales, which made today’s action necessary. “
On May 19, he paid a total of $ 16.2 million to 340 executives as part of a plan to keep them in place as the company attempts to reorganize itself, according to a filing with the Securities and Exchange Commission.
Coronavirus could be the latest blow to JCPenney, a 118-year-old department store. He was already struggling to overcome a decade of bad decisions, executive instability and harmful market trends.
“Until this pandemic hit, we had made significant progress in rebuilding our company,” said CEO Jill Soltau, adding that the company’s efforts “had already begun to pay off.”
The company, which owns the preppy brands J.Crew and Madewell, plans to remain in business and emerge from bankruptcy as a profitable company. And Madewell, the fast-growing denim brand that had been scheduled for an IPO, will remain part of the business.
The J.Crew group has been saddled with a heavy debt load since its purchase in 2011 from private equity firms TPG Capital and Leonard Green & Partners in a $ 3 billion deal.
It had grown rapidly in the nine years since the transaction was completed, almost doubling the number of stores. But he has also accumulated many more debts. He had a long-term debt of $ 50 million in his books in 2010, before the deal was announced – and by February of this year that number had risen to $ 1.7 billion.
The company operates nearly 500 stores, including J.Crew outlets.
The company’s history dates back 113 years to its first store in Dallas, which is still its home base. The company also manages the Bergdorf Goodman and Last Call chains.
The fate of ITS was most likely sealed in 2013 when Ares Management and the Canada Pension Plan Investment Board paid $ 6 billion in a leveraged purchase, making the company private.
“The big problem with Neiman is that the [private equity companies] he paid too much and accumulated too many debts, “retail consultant and former Neiman executive told Steve CNN Business.
CEO Steve Becker said the business was thriving before the pandemic. But the consequent temporary shop closings and employee employees had “serious consequences for our business.”
“The complete disruption of the store’s operations for two months puts the company in a financial position that can only be effectively addressed through a reorganization in Chapter 11,” he said in a statement.
The Dallas-based chain, filed on May 27, said it will permanently close approximately 230 of its nearly 700 stores in the United States.
–CNN Business’ Chris Isidore and Nathaniel Meyersohn contributed to this report.
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