The effects of the coronavirus pandemic on the global economy have been rapidly and frighteningly apparent. With stay-at-home orders and nonessential operation shutdowns now in place, many businesses have experienced layoffs, requested extensions on payments, and filed for government aid. Despite the large-scale federal stimulus package distributed after the CARES (Coronavirus Aid, Relief, and Economic Security) Act, hundreds of businesses of all shapes and sizes are still struggling. In the coming months, many companies will find themselves in dire financial conditions with no sign of improvement through an economic upturn. If you own a small business and are struggling even with the help of federal and state stimulus loans, filing for bankruptcy can help. With the advice and protection of Behm Law Group Ltd., you can file for small business bankruptcy in Jackson, MN, and receive relief from past and present debts.
Though the impact on the economy will affect everyone, the projection of a sharp increase in small business bankruptcies in the next year will disproportionately change the financial standings for a few industries.
Restaurants: The shutdown of nonessential businesses has had a severe impact on the food industry and restaurants in particular. The majority of all restaurants have shut down completely, while a few others are getting by via curbside and delivery services. Family-owned restaurants are having an especially difficult time, and hundreds will file for bankruptcy relief before the pandemic ends.
Luxury Stores: Boutiques, gift shops, and other luxury retailers are also having a hard time getting through the recession caused by the pandemic. Consumers dramatically limit spending on luxury goods when budgets get tight. That decrease in spending may last a long time, as past recessions have shown us, and for luxury retail business owners, bankruptcy may be the only way to survive.
Independent Oil Operations: Large oil and fossil fuel processors may have a good chance of getting through this time of extreme travel bans, but smaller independent companies may not survive. Oil costs are the lowest they’ve been in the last 10 years and demand continues to decrease. For owners of smaller oil processors, filing for bankruptcy may be the best way to protect themselves and their creditors.
Small Airlines: Despite multiple sources of federal support, small airports and airlines may have a hard time getting through the recession caused by the pandemic. With unsaturated airways and restrictions on air travel, most independent or privatized local airline companies have shut down completely. Increases in travel won’t pick up for some time, and it will be an uphill battle to return to pre-pandemic operations.
If you own a small business and are struggling to make ends meet during the coronavirus pandemic and its resulting recession, bankruptcy might be the right choice for you. To learn more about filing for bankruptcy in Jackson, MN, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.
