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These Big Businesses have been infected by Covid-19

Covid-19 came unexpectedly for most individuals, business owners, and countries worldwide. Since a lot of businesses depend on people to thrive, most of them suffered severely as the pandemic progressed. Those in the airline, restaurant, hospitality, and tourism sectors were hit the most during the period. Although some were able to successfully transition to the new digital way of conducting business, others are still scrambling. In this article, we will be taking a look at the big businesses that have been infected the most by COVID-19.

  1. JC Penny: JC Penny is one of the major companies in the retail industry. Based in Texas, this department store chain is one of the businesses hit the hardest because of the COVID-19 pandemic and stay at home orders in states nationwide. The department store chain was already struggling with debt before coronavirus hit and the pandemic served only to escalate its precarious position. On 15th of May 2020, they filed for bankruptcy after being weighed down by a huge 4.2 billion dollar debt.  

 

  1. Hertz: Hertz, a subsidiary of Hertz Holdings in Florida, is a Car Rental Service with over 90 years’ experience. With most people staying at home and travel at a minimum, the company has suffered major losses and on the 22nd of May, it filed for chapter 11 bankruptcy in hopes to restructure its estimated 17 billion dollar

 

  1. ALDO Group: This Canada based shoe retailer had been enjoying a booming business in over 3,000 stores worldwide before COVID-19. However, on the 7th of May 2020, it filed for creditor protection in order to restructure to adequately adjust to the new economic realities.

 

  1. Whiting Petroleum: This major oil and gas company with business concentrated in Colorado and North Dakota, has said it would be filing for bankruptcy to aid in its restructuring plans. The decision came as a consequence of the recent drop in oil barrel prices and its demand during this COVID-19 period. The company hopes to convert over 2.3 billion dollars in debt into equity during the course of the restructuring program. It currently is still financially afloat to stay in business although its shares seemed to have fallen to a startling $1 in contrast to $150 which has been the value publicly traded since 2015.

 

  1. Rubies Costume Company: Rubies is the largest costume producing company in the world. For over 65 years, the company has been thriving in sales but with the closure of most retail stores, sales have declined drastically. The company had no choice but to file for bankruptcy on the 30th of April, 2020.

 

  1. Virgin Australia: One of the largest airlines in Australia and co-founded by the CEO of Virgin Group, Richard Branson. The company features as one of those hit hardest by the pandemic following the restriction of international movement. This is why on the 21st of April 2020, the company entered voluntary administration – an equivalent of bankruptcy in Australia.

The economic effects of the current pandemic are not limited to big businesses. If you or a loved one is facing a financial crisis, you need help.  The attorneys at Dsouza and Strachan Law Group have the knowledge and experience to get you back on track.  Contact Dsouza and Strachan today for a free consultation.

 

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