Business Bankruptcy, Coronavirus, COVID-19

Growing Number of Retailers and Restaurants Are Folding as the Covid-19 Pandemic Continues

Retailers and small businesses have been hit hard by the pandemic, after facing a brutal 2019.  Now a growing number of businesses and restaurants are folding, as Covid-19 continues to wreak havoc on the retail, restuarant industry and the global economy.

Here are the latest ‘big-name’ companies to file bankruptcy since mid-March.

Ruby Tuesday is the most recent restaurant to file for Chapter 11 bankruptcy.  It will permanently close 185 restaurants while it restructures.

Sizzler, USA filed for Chapter 11 bankruptcy in late September, citing a significant decline in dine-in business and trouble negotiating rent relief with its landlords.

Lord & Taylor, the country’s oldest department store, filed for Chapter 11 bankruptcy in August and recently decided to close all of its stores.

Stein Mart filed for Chapter 11 bankruptcy in August, stating ‘significant financial distress’ caused by Covid-19 and changes in consumer buying habits.  The majority of its 300 stores will close, according to the company.

Men’s Warehouse, Jos. A. Bank. and K&G brands owned by Tailored Brands filed for Chapter 11 bankruptcy in August.  Amid the pandemic, the company hit hard times as business attire and formal wear dropped in demand. Tailored Brands will permanently close up to 500 stores.

California Pizza Kitchen has yet to announce whether it will close any of its 200 locations, most of which are several months behind on rent.  The company, a staple at many shopping centers across the country, filed for Chapter 11 bankruptcy in July.

GNC, the popular vitamin retailer, filed for Chapter 11 bankruptcy at the end of June, saying it will close more than 1,200 of its 7,300 stores.  The company attributed the filing to mounting debt and a significant sales slump, related to the pandemic.

Pier 1 recently announced that it will permanently close all stores and begin liquidating after filing for bankruptcy back in February 2020. They cited the uncertainty in a post-Covid world as the reason for closing all of its stores.

Please click here to view the entire list of retailers and restaurants that have filed bankruptcy since the pandemic.    

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.