Over 400 companies declared bankruptcy from the start of 2020 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.