The impact of the coronavirus is far-reaching, affecting almost every aspect of life as we used to know it. People are losing their jobs and businesses large and small are closing down — some temporarily, and others for good. While online shopping has increased with the stay-at-home orders, the retail industry is still taking a serious hit, leaving many chains to contemplate the benefits of bankruptcy.
Which Retail Chains are Considering Bankruptcy?
The following chains are weighing bankruptcy options:
- 24 Hour Fitness is facing both debt and diminished performance.
- AMC Theaters is well-known as one of the largest movie theater chains in the nation. As these large movie houses have been forced to shut down, keeping the business going with devastated revenue sources is putting tremendous stress on the company.
- JCPenny has been struggling with declining sales over the past couple of years and has been trying to rebrand itself for some time. Forcing stores to temporarily close on top of pre-existing debt, the retailer is looking into declaring bankruptcy to assist with finances and to save money on continued debts. The retailer did not pay a $12 million debt that was due in April. For now, JCPenny has indicated they have enough money to hold out for a bit longer before they have to make difficult financial decisions.
- Lord & Taylor is currently negotiating with creditors to find options for debt relief and actively looking into financing options to avoid bankruptcy.
- Neiman Marcus stores are temporarily closed and the company is preparing for bankruptcy.
- True Religion is a designer jeans company that has been struggling and has filed for Chapter 11 bankruptcy. This is the second time the fashion brand has declared bankruptcy, as the company no longer has the funds to stay viable.
Forever 21, Sears, Kmart, David’s Bridal, and Ascena Retail Group are all in grave danger as they are rapidly losing cash during the shutdowns. Their futures are uncertain. So many Americans are out of work that even when the country starts to reopen, there is no guarantee that customers will have the ability to come back and shop. There have already been 2,184 permanent closures in 2020 before the pandemic took over. Other chains including GNC, J.Crew, and Rite Aid are in dire straits.
The silver lining for the industry is that not every store is being negatively impacted by the pandemic and the current state of the economy. Target, Costco, and Amazon are thriving. Online shopping has picked-up significantly and many businesses are offering curbside pickup and delivery options. The surge of e-commerce has allowed stores like Walmart to increase hiring as the need for employees to help fill orders and the demand for supplies is high. Walmart, like Target and Amazon, is also temporarily raising pay for employees.
Do You Need Help With Bankruptcy in Indiana?
Families, individuals, and businesses across the state of Indiana are contemplating their futures as their financial stability continues to change. If you need help determining if bankruptcy is right for you or if there are other options to help you with your debt situation, Christopher L. Arrington, P.C. is an Indiana bankruptcy attorney who can help.
As a Danville, Indiana bankruptcy lawyer, Christopher L. Arrington is committed to providing the highest quality legal services at cost-effective prices. Call Christopher L. Arrington’s Danville law firm at 317-745-4494 today to schedule a free consultation.