Numerous major U.S. companies declare bankruptcy as coronavirus lockdowns drag on
Retailers, rent-a-car businesses all going under
May 28, 2020 - 12:28pm
Multiple major U.S. retailers and businesses are declaring bankruptcy as the coronavirus pandemic and related restrictions on major sectors of the U.S. economy stretch into roughly their ninth week.
J.C. Penney, Tuesday Morning, J. Crew, Hertz and other corporations have all filed Chapter 11 in recent weeks, the result of many states forcing retailers to temporarily close stores.
Some of those companies, along with several others that recently filed for bankruptcy, have been financially struggling for some time due to changing consumer habits, especially online shopping.
Gold's Gym, a nationwide exercise outlet, has also filed for bankruptcy, as did century-old department store Neiman Marcus.
Consumer spending plunged 7.5% in March, the Commerce Department reported at the end of April, the sharpest drop on records going back over six decades.
However, states loosening restrictions as the coronavirus numbers decrease, or at least flatten, have sparked some optimism.
Store can now allow customers inside, in limited capacity, in many states.
Some businesses have in fact prospered amid the shutdown include the discount store Dollar General, which on Thursday reported a 27.6% increase in net sales for the first quarter.
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