6 companies filed for bankruptcy in May

6 companies filed for bankruptcy in May

Retailers were already fighting and now they are carrying Coronavirus’ effects. But a large gym brand and a large car rental company have also recently filed for bankruptcy.

Bankruptcy filing does not mean that any company will go out of business. Many use bankruptcy for other reasons and other liabilities when they stop making non-profit activities in the hope of becoming emerging donors and powerful. Many of these companies have posted record profits, including automakers Ordinary motor (GM)And many airlines in the country.

Yet, many more brands that filed for bankruptcy with the intention of staying in business did not survive. Here are some US-based companies that filed in May:

Gold Jim reported it in May The virus has affected it “deeply and in different ways”, including the temporary closure of most of its 700 gym worldwide.

The statement went on to say that filing bankruptcy protection in Chapter 11 would help it “become stronger and ready to grow”.

The 55-year-old company plans to get out of bankruptcy by August, saying it is “absolutely not going anywhere.” Gold shuttered 30 places in April, but has no plans to close any more gyms permanently.

Hertz

Car rental giant Hertz (HTZ) Filed for Bankruptcy 22 May. The company rents cars under the Dollar, Trifty and Firefly brands.

The company has been in business since 1918, when it set up shop with a dozen Ford Model TS. The Hertz Great Depression cut off total production in the United States during World War II and saved it from the shock of soaring oil prices.

With the bankruptcy declaration, the rental car company said it would like to stay in business while restructuring it so that it can become more financially sound.

“The impact of the Covid-19 on travel demand has been sudden and dramatic, resulting in a sharp decline in the company’s revenue and future bookings,” the company said in a statement. It will be reopened for sale, which required today’s action. “

Hertz was criticized Millions of dollars in bonuses Its executives just before bankruptcy – and it began laying off thousands of employees a month later.

According to information filed with the Securities and Exchange Commission, the company paid a total of $ 1.2 million on May 19, 191, as part of its plan to retain the company while trying to reorganize.

JCPenney

The coronavirus could be the final blow to 118-year-old department store Stalwart Jessipenny. It was already struggling to overcome decades of bad decisions, executive instability and harmful market trends.

JCPenney (JCP) Filed for bankruptcy May 15th. The company has an agreement with most donors that will allow it to try a turnaround plan to stay out of business.
But it will stop 30% or about 200 of the 846 U.S. stores, The company did not say how many 85,000 employees would lose their jobs as a result of the permanent store closure.

“Until this epidemic hit, we have made significant progress in restructuring our organization,” CEO Jill Saltau added in a statement, adding that the organization’s efforts “have already begun to stall.”

However, GCP’s problems go back to long before the epidemic, causing the agency to Decades of bad decisions. Its most recent profitable year was 2010, with a total loss of ৪ 4.4 billion since then.
And the entire department store sector has suffered as more consumers shop online. Likes Big-box disagreements Walmart (WMT), The goal (TGT) And More info (Expenses) Offering shoppers low prices and a selection of items that are not available in department stores such as groceries, they have proven to be competitive.

J.Crew Group

This is the difference that no one wants: J became the crew group The first national U.S. retailer Since the coronavirus epidemic forced a wave of store closures to file for bankruptcy protection. Filed May 4.

The company, which is owned by Preppy J. Crew and the Madwell brand, expects to remain commercially viable and emerge from bankruptcy as a for-profit company. And Madwell, the fast-growing denim brand that was ready for the IPO, will remain part of the business.

The J.Crew Group has been plagued by heavy debt burdens since it bought private equity firms TPG Capital and Leonard Green & Partners in 2011 for 3 billion.

In the nine years since the transaction ended, it has grown rapidly, almost doubling the number of stores. However, it has accumulated more debt. Its long-term debt on the book was ৫০ 50 million in 2010, before the deal was announced – and as of February this year, the figure stood at .7 1.7 billion.

The company operates about 500 stores, including J.Crew’s factory outlets.

Neiman Marcus

Luxury retailer Neiman Marcus, which Filed for bankruptcy. MayThe restructuring agreement with creditors said it would “significantly reduce debt and allow the company space for long-term growth.”

The company’s history dates back to 113 years ago in its first part in Dallas. The company also operates the Bergdorf Goodman and Last Call chains.

Neiman As of last year, there were 69 stores among the three brands. In March, just days before the Epidemic mass store closure request, the company announced plans to close permanently. It has a “majority” of 22 latest call outlet stores.

The fate of ERS was most likely sealed in 2013 when Ares Management and the Canadian Pension Plan Investment Board paid a 6 6 billion benefit buyout to the company as a private company.

“The big problem with Neimon is [private equity companies] “There’s a lot more and layered to take extra pay,” Steve Dennis, a retail consultant and former Nemon executive, told CNN Business earlier.

Tuesday morning

Discount home product retailer Tuesday morning (TUES) One of the reasons that caused the virus to cause chronic store closure was caused “Financial Barriers” “

CEO Steve Baker said the business prospered before the epidemic. But as a result the temporary store closed and the employee furloughs “had serious consequences for our business”.

“The complete shutdown of the store for two months has put the company in a financial position that can only be effectively addressed through a restructuring of Chapter 11,” he said in a statement.

The Dallas-based chain, which filed May 2, said it would permanently close about 230 of its nearly 700 U.S. stores.

– CNN Business’s Chris Isidore and Nathaniel Mieroson contributed to this report.

Leave a Reply

Your email address will not be published. Required fields are marked *