Over 400 companies have declared bankruptcy from the start of the year through August 9, and, unfortunately, there are more to come. That being said, here are 20 companies that have filed for bankruptcy or are at risk of filing due to the coronavirus pandemic.
20. Chuck E. Cheese
CEC Entertainment, the parent company of Chuck E. Cheese, filed for Chapter 11 bankruptcy on June 24, even though many of its locations across the country had reopened after having to close due to COVID-19 temporarily.
The company lost more than 90% of its revenue during the lockdown. “In ordinary times, the company would be financially sound,” CEC Entertainment Chief Financial Officer James Howell said in the court document, according to an article published by USA Today.
19. True Religion
True Religion filed for Chapter 11 bankruptcy in April. According to an article published by CNBC, the retailer said in a court filing dated April 13 that it would’ve preferred to wait it out until the lockdown was over, but unfortunately couldn’t afford to do so. To stay afloat, the retailer vowed to continue running its e-commerce businesses as it always has, while its CEO and its largest lenders provided fresh capital to the company to reorganize under Chapter 11.
18. At Risk: Sears and Kmart
Sears Holdings, which previously owned Sears and Kmart, went through bankruptcy less than two years ago. And, although it emerged from bankruptcy with less debt, the company was still in a weak position. Meanwhile, Transformco, the current parent company, has been slowly but steadily shuttering many Sears and Kmart locations since acquiring some of the assets of Sears Holdings in 2019. As a result, what was once one of the world’s largest retail entities now operates less than 100 stores.
17. Cirque du Soleil
Cirque du Soleil filed for Chapter 15 bankruptcy on June 29. At the same time, it announced that it would be laying off nearly 3,500 people. According to an article published by NBC News, the company said via press release that pandemic-related cancellations and closures forced it to file for bankruptcy and to let some of its people go. The company also said it hopes to restructure its debt with help from the Canadian government and private equity firms.