Which big name companies have filed for bankruptcy since the pandemic

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FILE – In this Thursday, June 18, 2020, file photo, a closed sign hangs in the door of The Market, a long-time restaurant and food store located in Larimer Square, that has closed because of the new coronavirus, in downtown Denver. State governments are pushing for help from Congress to fix budget gaps caused by the coronavirus pandemic and economic shutdowns. (AP Photo/David Zalubowski, File)

TAMPA (WFLA) -Many business have felt the toll of the coronavirus pandemic and that has led some major companies to file for bankruptcy.

Below is a running list of companies that have filed for bankruptcy during the pandemic.

JCPenney

 According to Business Insider, a nearly $4 billion dollar debt load, and competition online even before the pandemic, the retailer has struggled to stay afloat.

The company plans to permanently close about a quarter of its roughly 850 stores.

J.C. Penney has been in business for nearly 120 years.

Hertz

Hertz filed for bankruptcy protection, unable to withstand the coronavirus pandemic that has crippled global travel and with it, the heavily indebted 102-year-old car rental company’s business.

By the end of March, Hertz Global Holdings Inc. had racked up $18.7 billion in debt with only $1 billion of available cash.

Starting in mid-March, the company — whose car-rental bands also include Dollar and Thrifty — lost all revenue when travel shut down due to the novel coronavirus, and it started missing payments in April. Hertz has also been plagued by management upheaval, naming its fourth CEO in six years on May 18.

In late March, Hertz shed 12,000 workers and put another 4,000 on furlough, cut vehicle acquisitions by 90% and stopped all nonessential spending. The company said the moves would save $2.5 billion per year.

Gold’s Gym

Gold’s Gym announced it has filed for Chapter 11 bankruptcy in an effort to financially restructure due to the coronavirus pandemic.

The company announced it hopes to “be on the other side of Chapter 11 by August 1, 2020, if not sooner.”

GNC

The 85-year-old vitamin and dietary supplement company has been saddled wit nearly $1 billion of debt.

GNC faced declining sales at its brick-and-mortar locations since before the pandemic.

However, GNC said the stay-at-home orders during the pandemic had a “dramatic negative impact” on its business.

GNC will continue operating, but after clsoing 20% of its retail stores.

J.Crew

J. Crew was the first national retailer in the U.S. to file for bankruptcy when the coronavirus pandemic began back in May.

Through Chapter 11 bankruptcy, the company seeks to convert roughly $1.65 billion in funded debt into equity.

According to the company’s statement, J. Crew has secured commitments for $400 million in new money debtor-in-possession financing from existing lenders.

Stein Mart

Stein Mart Inc. announced that it has filed for Chapter 11 bankruptcy and may close all of its stores amid a retail decline fueled by the coronavirus pandemic.

“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic have caused significant financial distress on our business,” company CEO and CFO Hunt Hawkins said in a statement.

The company said it has launched a “liquidation process” and expects to close “a significant portion, if not all, of its brick-and-mortar stores.”

The 112-year-old company, which operates 281 stores across 30 states, said it is considering strategic alternatives, including the possible sale of its e-commerce operations and related intellectual property.

Ann Taylor, Lane Bryant

The operator of Ann Taylor and Lane Bryant filed for Chapter 11 bankruptcy protection on July 23

Mahwah, New Jersey-based Ascena Retail Group Inc., which operates nearly 3,000 stores mostly at malls, had been dragged down by debt and weak sales for years.

As part of its bankruptcy plan, the company said that it would close all of its Catherines stores, a “significant number” of Justice stores and a select number of Ann Taylor, Loft, Lane Bryant and Lou & Grey stores.

The company said it has reached an agreement with its creditors to reduce its debt by $1 billion. It received $150 million in new financing to continue operating during its reorganization.

This spring, Ascena furloughed 90% of its workers when it temporarily shuttered its stores while also canceling merchandising orders where possible to preserve cash. It started to reopen its outlets in mid-May and now has about 95% of its stores open.

Men’s Warehouse

Tailored Brands the parent company of Men’s Wearhouse as well as other fashion brands including Jos. A. Bank, Moores Clothing for Men, and K&G brands announced that it has entered into a restructuring support agreement with support from more than 75% of its senior lenders.

“The coronavirus pandemic has altered the way we all live and work. It means fewer in-person meetings, less going out and postponed wedding celebrations,” said Tailored Brands CEO Dinesh Lathi. “Simply put, people are staying home more, and our clothes are better suited to being out and about.”

In July, Tailored Brands announced 500 store closures and cutting 20% of corporate jobs, but says they will still have stores in every major metro area and in all 50 states.

Pier 1 imports

Pier 1 intends to shutter all of its 540 stores nationwide, the home furnishings company said it is seeking court approval to liquidate its remaining stores after failing to identify a buyer to keep the business going.

“This is not the outcome we expected or hoped to achieve,” said Robert Riesbeck, the company’s CEO. “Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down.”

The company, which has closed hundreds of stores in recent years, filed for bankruptcy in February. Before the pandemic, it said it was planning on closing 450 shops, roughly half of its locations, for good.

We’ll add to this list as more Chapter 11 filings are announced.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

April 24 2021 08:00 am

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