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Record bankruptcies in 2020 in the USA

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Record bankruptcies in 2020 in the USA

Due to the coronavirus pandemic, which nearly destroyed our world, and some other negative events in the United States, a powerful crisis erupted in 2020, endangering enterprises from various sectors of the economy. Let's see who is among the victims.

Which American companies have declared themselves bankrupt

  • Victoria's Secret
  • Gold's Gym
  • Hertz (car rental service) including their subsidiary Thrifty and Dollar
  • Comcar (the largest trucking company with a fleet of 4,000 vehicles)
  • JC Penny (the oldest retail company in the country) - Amazon is already buying it for next to nothing
  • The American division of Nissan Motor Co.

Closing of branches, stores and branches

Of course, self-isolation and quarantine could not but affect the losses in retail sales - the insane numbers of closing stores and company branches are staggering:

  • Zara = 1200
  • La Chapelle = 4391
  • Starbucks = 400 outlets closed forever
  • Gap
  • Bath & body works
  • Forever 21
  • Walgreens
  • GameStop
  • Pier 1 Imports
  • Nordstrom
  • Papyrus
  • Chico's
  • Destination maternity
  • Modell's
  • Bose
  • Art Van Furniture
  • Olympia Sports.

In total, according to analysts' forecasts, 12,000-15,000 retail stores will close in 2020.

America's largest mall, Mall of America, hasn't officially closed yet, but has stopped paying off its loans.

They have not yet announced the closure of outlets, but the following brands have stopped production: Chanel, Rolex, Patek Philippe.

Money loss

One cannot but sympathize with the legendary investor Warren Buffett, who has already lost 50 billion $ during the crisis. Black Rock, the largest investment company in the world, which manages the capital of investors totaling 7 trillion $, believes that the global economy is in disaster and cannot guarantee not only profit, but also the safety of investments.

Companies and brands are also suffering, as Nike is gearing up for a second wave of massive layoffs, with a debt of 23 billion $. The Airbnb founders did not release the loss figures, but say their works were destroyed in 12 years in 6 weeks.

Of course, the crisis could not help but hit ordinary people: according to the latest statistics, the number of applications for unemployment benefits jumped immediately by + 38%. Officially, there are 160 million able-bodied citizens in the United States, and more than 25% of them (about 40 million) are now unemployed.

Current material has been prepared by Egor Eremeev
Education: Kuban State University, Russia (World Economics); Westminster University (Business & Management), London.
Egor studied and lived in the UK for 8 years and graduated from the university of Westminster. He is currently the co-founder and the director of business development at Smapse Education and personally visits foreign schools and universities, interviews students studying in those institutions.
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