The COVID-19 pandemic and its corresponding economic shutdown has impacted businesses in countless ways, from increased contract disputes to a spike in loan defaults. Unfortunately, one of the most widespread effects we continue to see is the droves of companies filing for Chapter 11 bankruptcy, even after witnessing an initial wave of bankruptcies at the beginning of the pandemic.
Falling consumer demand, reduced entertainment spending and stay-at-home orders mandating certain businesses stay closed continue to take a toll on an already struggling retail industry. Even as the economy starts to slowly reopen and lockdowns begin to lift, COVID-related bankruptcies are increasing among businesses of all sizes. Not even iconic department stores and entertainment giants are spared.
To further demonstrate COVID-19’s influence on Chapter 11 filing numbers, here is a list of some of the most noteworthy and recognizable companies that have filed during the pandemic:
- Brooks Brothers: The oldest men’s clothier in the U.S., in business since 1818
- California Pizza Kitchen: A chain restaurant that has been serving California-style pies since 1985
- CEC Entertainment: The parent company of Chuck E. Cheese that was prepping for an IPO
- Chesapeake Energy: A large energy company based in Oklahoma City
- GNC Holdings: A nutritional supplement chain
- Hertz: A popular car rental company, which is the largest Chapter 11 bankruptcy during this time
- C. Penney: A department store chain
- Crew: A multi-brand, multi-channel specialty retailer
- Le Pain Quotidien, U.S. arm: A chain of bakery-restaurants
- Lord & Taylor: A storied department store chain with roots back to 1826
- Muji U.S.: A Japanese retail company that sells a variety of household and consumer goods
- Neiman Marcus: A luxury department store chain
- NPC International Inc.: The largest franchisee of Pizza Hut restaurants
- Stein Mart: An off-price retail chain that was never able to thrive like its peers
- Sur La Table: A privately held kitchenware company based in Seattle
- Tailored Brands: The parent company of Men’s Warehouse and Jos. A. Bank chains
- Virgin Atlantic: Sir Richard Branson’s airline company
If your company is positioned to join the growing number of businesses filing for Chapter 11 bankruptcy due to the COVID-19 pandemic, our firm’s two leading bankruptcy attorneys, Clive Morgan and Howard Slomka, can successfully represent you throughout the entire process. Contact our experienced team at Busch Slipakoff Mills & Slomka to learn more.
About Clive Morgan
Clive Morgan has practiced bankruptcy law for 38 years representing both creditors and debtors in business and consumer bankruptcies. He has practiced bankruptcy law in all three federal districts in Florida as well as in the Middle District of North Carolina. In recent years he has worked on protecting creditor rights in all phases of the bankruptcy process. Finally, Mr. Morgan has extensive bankruptcy litigation experience has represented parties in adversary proceedings in Chapter 7, 11 and 13 cases.
About Howard Slmoka
Howard Slomka has represented thousands of parties as both debtors and creditors in the complex world of federal bankruptcy. Mr. Slomka practices before the bankruptcy courts in both Georgia and Florida and has taught on topics related to discharges, adversary practice and U.S. Supreme Court recent precedents. He has handled several successful Chapter 11 reorganizations for entities ranging from large hotels and retailers to small businesses and even individual filings. A long-standing Board Member of the Bankruptcy Section of the Atlanta Bar Association, Howie is ready to represent debtors, creditors and other interested parties throughout the bankruptcy process.