Globally recognized companies that went bankrupt due to the pandemic

Chapter 11 of the United States Bankruptcy Code acts as a lifeline for many organizations.

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The millionaire losses due to the coronavirus forced them to take advantage of state bailouts.

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September 03, 2020, 12:04 PMTEtrends EL TIEMPOSeptember 03, 2020, 12:04 PM

According to figures from the American Bankruptcy Institute, the number of companies reporting bankruptcy has increased by 26%. However, for large companies that decide to file for the United States Bankruptcy Code, this does not mean that they have to close completely. " What it does is offer a way to reshape the business, reorganizing debt and eliminating expensive real estate" , explained Kevin Carey, a former bankruptcy judge and partner at the Hogan Lovells law firm, in an interview with NBC News. (Also: What should happen in your company if there are suspects or cases of covid-19?).

Here are some of the big companies that have filed for bankruptcy, according to a Forbes listing.

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Hertz

Hertz is an American car rental company that operates in 150 countries and has more than 10,000 franchises internationally. With the tourism industry slowed down, the company declared bankruptcy in May 2020, as it had a debt of 18,000 million dollars (more than 65 billion Colombian pesos). According to Forbes , the corporation laid off 10,000 of its North American employees in April this year and canceled the purchase of 90% of new vehicles. (It may interest you: Barbers fear bankruptcy and propose protocols to open their premises). "We have to be pragmatic about the moment of an economic rebound, that is why we are focused on safeguarding liquidity," said Kathy Marinello, CEO of Hertz, in Detroit News interviews.

J C Penney

This chain of stores has more than 840 stores located in the United States and Puerto Rico. The store offers clothing, jewelry, makeup and household items. With a debt of more than 4,000 million dollars (14 billion pesos), JC Penney announced in June that it would close 154 of its stores; In addition, it plans to close a total of 242 in the coming months, according to CBS. "While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensure we emerge," said Jill Soltau, CEO of the company, to CBS.

Cirque Du Soleil

This entertainment company is headquartered in Montreal (Canada). He filed for bankruptcy at the end of June. (Read more: Wedding company mocks widowed groom after denying him a refund.) Their performances combine music, dance, and various circus acts to create different stories through juggling, acrobatics, aerial dance, and the use of various elements, such as trapezes and trampolines. The Cirque du Soleil tours the world throughout the year; However, with the pandemic, it announced the dismissal of 3,480 workers, as several events were cancelled. It is worth noting that the entertainment industry is one of the hardest hit, since, to prevent the spread of the virus, mass gatherings were prohibited in good faith. part of the countries. Within these meetings concerts, theaters and, of course, circuses are contemplated.

Aldo

The Aldo group, originally from Montreal (Canada), has a worldwide chain of shoes and accessories. Its more than 3,000 stores are distributed in around 100 countries, although the only ones that are owned by the group are located in Canada, the United States, the United Kingdom and Ireland. The rest are franchises. In a statement, the company said it would close 13 of its stores. Similarly, he stated: "Aldo will remain a global brand and still has a strong presence in more than 100 countries. The company will use the proceedings to restructure its business and build on its legacy." (We recommend: Controversy by a clothing store employee who attended without a mask).

Aeromexico

The Mexican airline, headquartered in Mexico City, filed for bankruptcy protection in the United States in July. This company offers trips to more than 90 destinations in Latin America, Europe, Asia and North America. However, its operation was extremely reduced with the closure of airports and the crisis in the tourism sector. "Our industry faces unprecedented challenges derived from a significant reduction in global passenger demand, so we are committed to adopting the necessary measures to operate continuously and efficiently in this new reality, and thereby be better prepared for a successful future during and after the pandemic ," CEO Andrés Conesa told El País. Also: Mexico, Italy and countries with travel discounts after the pandemic).

NeimanMarcus

Neiman Marcus is an exclusive luxury retailer with 43 department stores and 22 discount stores. It was declared bankrupt at the beginning of May, after being forced to close its establishments. However, in June, the US company announced that it would emerge from bankruptcy at the end of November, after reopening 90% of its stores and accessing a loan of 250 million dollars (more than 900,000 million pesos).

J Crew

This company was the first retailer to file for the United States Bankruptcy Code , after suffering sales losses and facing a debt of more than one billion dollars (about 4 billion pesos). However, he announced that he would structure a plan to get out of the crisis. (Also: Emotional message from a young paisa who lost his restaurant due to the crisis). "The confirmation of our reorganization plan is another important milestone in our path towards the transformation of our business, which will fuel the long-term, sustainable growth of J. Crew," the company said in a statement.

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