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.
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:
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.
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. “
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.
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.
“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.”
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.
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.
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.
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.