The continued COVID-19 crisis is still showing the impact it’s having on the global economy. More and more large companies, local businesses, and nonprofit organizations will struggle to make ends meet, and those that cannot may find debt relief in bankruptcy. With the cases of Neiman Marcus and J.Crew, we’re seeing the first of many large business bankruptcies that are an almost direct result of the coronavirus pandemic and shelter-in-place orders.
There are many signals that big business bankruptcies send to individual consumers, including the fact that we’re entering a recession. An economic recession often includes increases in individual debts. If you’re struggling with worsening financial circumstances, Behm Law Group, Ltd. can help you join others who are finding debt relief in Mankato, MN through bankruptcy.
While big business bankruptcies might not affect you directly, they’re a signal of a changing economy. This often means that you may be impacted in other ways. If you haven’t already seen harder financial times due to the pandemic and national crisis shut down, these big business bankruptcies might be a sign of worse times to come:
- Art Van Furniture filed for reorganization bankruptcy on March 8th. In April, that reorganization was converted to a liquidation case which will require the closure of Art Van as a whole.
- Bar Louie shuttered almost half of its locations in January after struggling with early COVID-19 shutdowns.
- CMX Cinemas filed to reorganize its debts on April 25th, shutting down all 41 locations in the meantime.
- Frontier Communications filed a $10 billion debt reorganization plan on April 14th. It’s one of the largest telecom companies in America.
- J.Crew filed on May 4th for a reorganization plan of $1.7 billion in debt. 181 J.Crew stores, 140 J.Crew-owned Madewell brand stores, and 170 factory stores are currently closed but will open after COVID-19 restrictions are lifted.
- Pier 1 filed reorganization bankruptcy on February 17th with almost 1,000 stores. The company’s stock has declined steadily since 2013.
- Rubie’s Costume Company is the largest costume supplier in the world. The company filed for bankruptcy on April 30th.
Other large oil companies and retailers have also begun the process to file for reorganization or liquidation bankruptcy. The big takeaway from these large business bankruptcies for individual consumers is a wide view of how the economy is changing as a result of the coronavirus pandemic.
Individuals with growing debts should know that they’re not alone. If you’re considering filing bankruptcy for debt relief in Mankato, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.
