Globally Recognized Companies that Went Bankrupt Due to the Pandemic

According to figures from the American Bankruptcy Institute, the number of companies that claim to be bankrupt has increased by 26%.

However, for large companies that decide to file under the United States Bankruptcy Code, this does not imply that they have to close completely.

“What you do is offer a way to reshape the business, reorganizing the debt and eliminating expensive real estate,” explained Kevin Carey, a former bankruptcy judge and partner at the Hogan Lovells law firm, in an interview with NBC News.

Hertz is an American car rental company that operates in 150 countries and has more than 10,000 franchises internationally.

With the tourism industry slowed down, the company declared bankruptcy in May 2020.

According to Forbes, the corporation laid off 10,000 of its North American employees in April this year and canceled the purchase of 90% of new vehicles.

“We have to be pragmatic about the timing of an economic rebound, so we’re focused on safeguarding liquidity,” Hertz CEO Kathy Marinello said in interviews with the Detroit News.

This chain of stores has more than 840 stores located in the United States and Puerto Rico. The store offers clothing, jewelry, makeup, and household items.

With a debt of more than 4,000 million dollars (14 trillion pesos), JC Penney announced in June that it would close 154 of its stores; in addition, it plans to close a total of 242 in the coming months, according to CBS.

“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge,” Jill Soltau, the company’s CEO, told

In their presentations they combine music, dance and various circus acts to create different stories through juggling, acrobatics, aerial dance and the use of various elements, such as trapezoids and trampolines.

Circo del Sol tours around the world throughout the year; However, with the pandemic, he announced the dismissal of 3,480 workers, as several events were canceled.

It is worth noting that the entertainment industry is one of the hardest hit, because, to prevent the spread of the virus, mass meetings were prohibited in many of the countries.

Its more than 3,000 stores are distributed in around 100 countries, although the only ones owned by the group are located in Canada, the United States, the United Kingdom and Ireland. The others are franchises.

In a statement, the company assured that it would close 13 of its stores. Similarly, he stated: “Aldo will continue to be a global brand and still has a strong presence in more than 100 countries. The company will use the procedures to restructure its business and build on its legacy.”

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Summary

According to figures from the American Bankruptcy Institute, the number of companies that claim to be bankrupt has increased by 26%.

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