The Covid 19-led shutdowns, near-zero travel demand and people staying indoors in the fear of contracting the deadly virus have meant no business which, in turn, has triggered a wave of bankruptcies in Corporate America, pushing President Trump to reopen the country.
From oil companies and gyms to an apparel retailers with a history that goes back to 1818 have declared bankruptcies since March.
The Covid-19 lockdown has brought most of the retail sector to its knees. All victims of declining prices, surging costs and changing tastes, here are some of the biggest names to file for bankruptcy:
Chapter 11
Named after the US bankruptcy code 11, it is filed by corporations and involves a reorganisation of assets and debt, giving the debtor a fresh start
Other companies that have announced store closures
Bath & Body Works’ parent company, L Brands
The company will close 50 locations in the US, as well as one store in Canada this year
Signet Jewelers
In June, the company revealed that it plans to close 150 US stores and 80 UK stores
Zara
In June, Zara’s parent company, Inditex, announced plans to close between 1,000 and 1,200 stores over the next two years
Macy’s
It said it will be closing 125 stores over the next three years
Nordstrom
In June, it announced that it will permanently close all three Jeffrey designer apparel stores in addition to the 16 Nordstrom department stores it plans to shut down
April
Diamond Offshore & Whiting Petroleum
Both the oil and gas companies have cited falling demand for its services which had “worsened precipitously” this year amid a price war between OPEC and Russia and a steep drop in oil demand caused by the Covid-19. While Diamond Offshore has significant operations in the Gulf of Mexico, Whiting Petroleum was one of the largest producers in North Dakota’s Bakken shale region. Whiting Petroleum was among the first energy companies to file for bankruptcy since the coronavirus reduced demand for oil, and announced a restructuring plan that would cut $2.3 billion of its $3.6 billion debt
May
$675 mn Neiman Marcus said it has secured $675 million in financing from its creditors to fund operations through bankruptcy
June
July