No one can deny the effects of COVID-19 outbreak on their lives, but companies -be it small or large ones- are all struggling because people were stuck at home, so as their money, and even some of them filed for bankruptcy and experts predict that things are only going to get worse. Here’s a list of companies that you may be familiar with that filed for bankruptcy because of the pandemic:
Being one of the well-known gym chains didn’t save them as the pandemic hit the globe. Gold’s gym had to close their 700 fitness centers around the world due to coronavirus lockdown, but 30 of them were closed permanently as they declared bankruptcy in May. The good news to our fitness fanatics is that they said “the filing won’t prevent us from continuing to support our system of nearly 700 gyms around the world”
Pizza Hut and Wendy’s
NPC, the operator of Pizza Hut and Wendy’s in the United States, has filed for bankruptcy. This news really got the foodie in us screaming “what in the stuffed crust is that?” But unfortunately, the franchise had dealt with so many problems including coronavirus-related shutdowns and a massive debt which led to the filing.
The Montreal-based shoe retailer that operates about 3,000 locations in more than 100 countries, filed for bankruptcy protection under pressure from store closures.
The British fashion retailer, which employs more than 20,000 people, is set to enter its third insolvency process in a year, after filing for administration in April 2020. Debenhams, like most retailers, had been struggling because of the lockdown, and it entered its first administration period last April and the result of last April’s administration was the closure of 20 stores. Now, it is liquidating its business in Ireland, permanently closing its 11 stores there. And we secretly pray this doesn’t affect the one here in Egypt.
If people are stuck at their own houses then there’s no need to rent a car. Hertz is a cr rental company that dealt with a sudden, rapid, and dramatic blow because of the coronavirus, which was the biggest bankruptcy filing of 2020. The car rental industry suffered serious blows from the coronavirus pandemic, and Hertz laid off 10,000 workers amid the crises.
Honorable mention: Roberto Cavalli
As bad as it is for our beloved fashionistas and fashion gurus, the Florence-based brand, known for its flamboyant prints, closed its US shops just after announcing that it was trying to seek an investor deal to prevent bankruptcy.
A strong upper Egyptian woman! By day, Gilan uses her voice and platform to educate, advocate, and enhance the voices of minorities, and by night, she paints her face with bright colors and glitter!