The COVID-19 pandemic proved to be extremely fatal for businesses. Many small businesses have bowed out to protect themselves from further losses. In the scramble to find a cure for the virus, these are some of the notable businesses that have filed for bankruptcy.
Gold’s Gym
It was surprising to see Gold’s Gym on this list. The stay at home orders proved to be extremely harmful to the business. They filed for bankruptcy last May. Gold’s Gym currently has 700 gyms worldwide. While franchised locations will continue to operate, 30 of the company-owned gyms will be permanently closed down.
True Religion
True Religion was popular for its premium denim jeans. The brand filed for bankruptcy last April 13 following the announcement of the global pandemic. This is the second time they filed for bankruptcy in less than three years. True Religion has been struggling against budget clothing choices and “athleisure” brands in the past few years.
As for restructuring, the company’s biggest lenders are providing more capital for the brand to aid them in the rebuild. Meanwhile, True Religion has been relying on its e-commerce sales in the past few months.
Virgin Australia
Australia’s second-biggest airline announced on April 21st that it will be undergoing a third-party restructuring. This move may result in a sale of the company. The airlines have not done so well in the past seven years, often reporting annual losses in past years. They also sought government aid before filing for bankruptcy but were ultimately denied.
J.C Penney
Popular clothing retailer, J.C Penney has also filed for bankruptcy during the second week of May. This was caused by declining sales and an estimated $4 billion in debt. One of the alarming signs that the retailer was on a decline was when it missed two consecutive interest payments of $12 million and $17 million.
As for restructuring, the company seeks $450 million during the bankruptcy. There are over 850 stores around the U.S and 200 might be closing down as part of the bankruptcy process.
Mohegan Gaming & Entertainment
The pandemic proved to be extremely harmful to the casino business. Mohegan Gaming & Entertainment owns Mohegan Sun Casino in Connecticut. After the state ordered nonessential businesses to temporarily stop operations, the company was left reeling. It was noted that last April 15, the company deferred an interest payment of $19.7 million. It was also reported that they have furloughed over 98% of their employees in one of their filings.
These are just some of the hundreds or even thousands of businesses who have decided to file for bankruptcy. If you’re a small-business owner, you might want to learn more about growth opportunities for business during the pandemic. Click here to read.
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