The coronavirus pandemic really came to adversely affect everything that we have struggled to build over the years. Well, it was a quick reminder that we don’t have complete control over everything in the world. So many new companies went out of business just as quickly as they came. The most shocking ones are the companies that we would have thought had everything figured out and planned for actually going bankrupt.
In this article, we’ll look at a list of companies that went bankrupt because of coronavirus. Maybe there’ll be a lesson or two to learn from the misfortune that came upon them.
1. Chuck E Cheese
The Chuck E Cheese company got what is to be their biggest financial setback this year during the coronavirus. Although they opened 266 new venues with their Chuck E Cheese and Peter Piper locations, they believe that filing for bankruptcy will help them restructure their financial strategy and get back promptly on their feet.
For the record, GNC has been active for a total of 85 years now and was still kicking the market in the balls until early in June when they could no longer manage their finances, debts, and shareholders. They filed for bankruptcy when 30% of their stores were temporarily closed, including the ones in Canada and the U.S.
3. Brooks Brothers
On the 8th of July, this iconic clothing line filed for bankruptcy to restrategize and restructure its finances. Although Brooks Brothers is still functioning, its assets have been shared among shareholders and creditors. The owner laments that the company was already going through a hard time with the population seeking more casual wear. The coronavirus made it much worse because people don’t wear expensive clothes to just sit at home.
4. Cirque du Soleil
Cirque du Soleil laid off around 3,480 workers during the coronavirus pandemic in June. On the 29th of June, the company filed for bankruptcy, claiming that the pandemic forced them to stop work. We’re most likely not going to be seeing Cirque du Soleil unless they decide to sell the company.
After getting weighed down with over $4bn in debt, they decided to call it quits and filed for bankruptcy on the 15th of May. JCPenney has been on a losing streak for the past eight years. Even the worst basketball team couldn’t be that terrible. The coronavirus pandemic came to destroy everything for them with the forced closure of stores and stoppage of activities.
6. Neiman Marcus
Another company like JC Penney that was weighed down with a $4bn debt seeking to get it off their necks with bankruptcy was Neiman Marcus. The company clearly couldn’t take it anymore. On the 7th of May, they decided they weren’t doing business anymore. The coronavirus sucked them out of their shells. The company has 43 locations and 24 stores, and everything was shut down. It would take more than a miracle to wake this one up. Even Lazarus wasn’t that dead.