As we enter the fourth quarter of 2020, one thing is clear for everyone in business: times are tough. If you need the services of a bankruptcy attorney, don’t hesitate to contact us.
The coronavirus pandemic has caused many businesses, including some big names, to file for bankruptcy this year. According to James Hammond, CEO of New Generation Research, the sheer magnitude of bankruptcies by June of this year had already surpassed what occurred in 2008. Speaking of what is yet to come for 2020, Hammond says, “I’m pretty confident we will see more bankruptcies than in any businessperson’s lifetime.”
This is not welcome news for most business owners whose companies are struggling right now. Small businesses are especially vulnerable, though with some of the major companies that have already filed paperwork, it might seem like no one is really safe.
The Biggest Bankruptcies of 2020 (So Far)
Even for a bankruptcy attorney team, this year has been a lot to process. Each of the following companies had billions of dollars in assets and liabilities prior to filing for Chapter 11 bankruptcy. While filing for this form of bankruptcy does indicate that a business is struggling, it is important to note that after filing for Chapter 11, the business will continue to operate.
- J. Crew
- Chuck E. Cheese’s
- Neiman Marcus
- J.C. Penney
- Frontier Communications
The final name on the list, Hertz, is perhaps the biggest bankruptcy news to come out of 2020 so far. After people stopped traveling because of the pandemic, the rental car company took a major hit. Hertz decided to sell off many of its assets in order to make good on its debts.
While Hertz is the most notable bankruptcy to date, the travel industry has not been the hardest hit. That unfortunate title goes to the restaurant industry, followed closely by construction, real estate, healthcare, and retail.
Contact a Bankruptcy Attorney If You Need Help
There is no doubt that the current economic climate is going to be one of the toughest for business owners across the country. Running a successful business is difficult even when conditions are optimal—to have a company or store that is thriving right now is next to miraculous if your industry has been hit hard by COVID-19. Bankruptcy might feel like your only option, and you might think that is a bad thing
But bankruptcy is not necessarily the end. In fact, filing can actually protect you from harassment from creditors and your business from closure.
The bankruptcy attorney team at AM Law is here to assist you. If you are considering bankruptcy but want to learn more about how it will affect you in the future, what protections it can offer you, or what alternatives are available to you, don’t hesitate to reach out to us today.
Want to learn more about what your options are? Sit down with us so we can discuss your needs.