Bankruptcy cases, store closings pile up as coronavirus wreaks havoc for J.C. Penney, Hertz, others

[Geee]

USA Today

Companies are rushing to U.S. Bankruptcy Court during the coronavirus pandemic, seeking refuge from their creditors as they grapple with the fallout from temporary store closures and the travel industry shutdown.

So far, most of the bankruptcy filings have been companies that were already in rough shape, including J.C. Penney, J. Crew, Neiman Marcus and Hertz.

Off-price retailer Tuesday Morning and restaurant chain Le Pain Quotidien joined them in Chapter 11 on Wednesday, while Advantage Rent A Car filed on Tuesday.

Taken together, these cases illustrate how the nation's weakest companies are desperately trying to avoid outright liquidation.

Coresight Research, which tracks retail openings and closings, has upped its projected store closures for 2020 from 8,000 at the beginning of the year to 15,000 at the beginning of March to about 25,000 now.

“That’s unlike anything the industry has ever seen,” Coresight CEO and founder Deborah Weinswig said. “It’s the speed with which it’s all happening which has been a little surprising.”