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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBankruptcies surging as coronavirus levels U.S. economy
The coronavirus pandemic is setting off a wave of corporate bankruptcies, with thousands of U.S. retailers, energy companies and other businesses succumbing to the recession caused by the pandemic.
Through June 30, there were more than 3,600 Chapter 11 filings this year by companies seeking court protection from their debts a 26% jump from the year-ago period, according to data from Epiq Global. And in June alone, amid signs the economic recovery is stalling as coronavirus cases surge around the U.S., bankruptcy filings surged 43%, the legal services firm found.
Chuck E. Cheese, Hertz, J. Crew, J.C. Penney, and Neiman Marcus are just a few of the brand-name players that have declared bankruptcy this year after sales slumped during the pandemic. But financial experts think the worst is yet to come, with retailers and oil patch companies particularly vulnerable in what amounts to the sharpest drop in economic growth in decades.
For example, companies such as Texas oil producer Lonestar Resources and Men's Wearhouse parent company Tailored Brands have recently skipped bond payments, a common sign of financial distress.
https://www.msn.com/en-us/money/news/bankruptcies-surging-as-coronavirus-levels-u-s-economy/ar-BB16YT5L?li=BBnbfcN&ocid=DELLDHP
Initech
(100,149 posts)KWR65
(1,098 posts)All Americans have too much debt and it is impossible to pay it back. Germany in 1947 had one that was caused by the 1920-1930 failed state and the WWII war debts. We can write off the national debt also.
And there goes the Social Security trust fund. It's debt.
erronis
(15,470 posts)I'm guessing that every newborn should become a LLC/LLP and plan to shuck indebtedness when convenient.
Good parents will set that up for him/her with a nice little nest egg.
When entities such as colleges want to know the parents' net worth, the little egg can say "I don't have any parents."
When the little egg runs out of yolk he/she can just dissolve (runny mess) and re-incorporate (humpty-dumpty back together again!).
Dear donald, the rottenest egg of all, showed everyone how to get out of any responsibility.
lpbk2713
(42,775 posts)Now they're sure to go under.