More Than 10 US Retailers Have Filed For Bankruptcy.

As the outbreak of the new crown virus in the United States broke out rapidly, the national blockade of the epidemic and the sudden economic halt brought numerous losses to many industries and enterprises.

For players who are better at their own situation, the trouble is temporary. They can still persist, but for players who have already been seriously ill, the situation is very bad. It is regrettable that in recent years, the entity retailing, which has been under the impact of new forces such as Amazon, is exactly the latter.

Now, though the US economy is starting to restart, the policy of social estrangement is expected to continue for several months. This means that retail, catering, entertainment and other industries want to restore the old view is impossible, and eventually many companies have to choose to go bankrupt.

01. Bankruptcy tide hits

According to incomplete statistics of NBC, more than ten large retailers in the United States have fallen into bankruptcy since the outbreak of the epidemic.

Dean&Deluca

The New York based high-end food store filed for bankruptcy in March 31st. It was one of the first major enterprises to fall under the impact of the epidemic. The company was founded in 1977 and was acquired by Pace Food Retail in 2014.

Apex Parks

Apex Parks operates 14 family entertainment and water parks in New Jersey, California and Florida. They filed for bankruptcy in April 8th. The press release released by the company said they would not give up these businesses in the future.

FoodFirst Global Holdings

FoodFirst Global Holdings is the parent company of Bravo Cucina Italiano and Brio Tuscan Grille chain restaurant brand. They filed for bankruptcy in April 11th. FoodFirst acquired these brands in 2018.

True faith

True Religion Apparel, a famous businessman with jeans, filed for bankruptcy in April 13th. Their gradient products were popular in 2000s. Prior to 2017, the company had applied for bankruptcy records.

CMX Cinemas

CMX Cinemas, a chain restaurant cinema company, filed for bankruptcy in April 25th. They were owned by Cinemex Holdings, the parent company. They were still buying Star Cinema Grill before their accident. They just signed the contract six weeks ago.

Rubie 's Costume Company

Rubie s is a company specializing in the production and sale of products such as holiday costumes and wig, and filed for bankruptcy in April 30th. Rubie 's once claimed to be the world's largest Halloween design and manufacturing company.

J.Crew

The company once won the popularity of many stars and consumers on campus fashion, but in May 4th it had to file for bankruptcy. They also own women's clothing and accessories brand Madewell.

Gold 's Gym

Gold s Gym owns and operates more than 700 gyms in the US and overseas, and filed for bankruptcy in May 4th. The company said in a press release that they hoped to complete bankruptcy reorganization by August 1st, if not faster.

Niemann

Niemann (Neiman Marcus), a luxury department store, filed for bankruptcy in May 7th. The well-known retailer in the United States has a history of 100 years, and quite a few of them are similar.

Stage Stores

Stage Stores owns and operates a series of brands such as Bealls, Goody's, Palais Royal, Peebles, Gordman, s, and nearly 800 stores in the US, and filed for bankruptcy in May 10th. Their brands cover a wide range of different products, such as clothing, beauty products and home products.

Jesse Pani

Jesse Pani (JCPenney), headquartered in Plano, Texas, is one of the first department stores in the United States and has a history of more than a century. However, in recent years, because of the rise of online shopping and fast fashion, they are already on the decline. In recent years, Jesse Penny has been troubled financially and finally filed for bankruptcy in May 15th. The company said they would announce the first batch of closed shop lists in the next few weeks.

Pier 1

Pier 1 (Pier 1 Imports), a furniture and home product retailer, has filed for bankruptcy in February. In May 19th, it announced that they were seeking approval from the bankruptcy court and planned to withdraw business as quickly as possible. Because of the impact of the epidemic, they simply can not find buyers who are willing to take over. Pier 1 has more than 900 stores in the United States.

02. It's not easy to say bankruptcy.

However, it needs to be pointed out that the so-called bankruptcy does not mean that an enterprise will disappear completely, and more often it is just a financial restructuring. However, when a large bankruptcy occurs in a certain industry, it is undoubtedly a signal of significant changes in the direction of the development of the industry.

In the current epidemic, the possibility of bankruptcy of retail enterprises has increased significantly, but ironically, it is also more difficult for them to achieve the goal of bankruptcy because of the epidemic.

For example, according to CNN, when J.Crew announced bankruptcy recently, some experts pointed out in the comments that many retailers have not yet filed for bankruptcy because they can not decide which stores should be closed during bankruptcy.

Reshmi Basu, a retail bankruptcy expert at Debtwire, explained: "if the store is still open now, we will see more bankruptcy applications." We know clearly that many companies are now in contact with bankruptcy advisers. However, it is really not a good time to apply. Many companies did not apply because they are now almost impossible to liquidate for sale and obtain funds.

Bankruptcy is not equal to death. Businesses can use this process to cut off unprofitable businesses, reduce debt and other burdens and return to profitability. However, such restructuring requires capital. Under normal circumstances, they can obtain funds through "debtor-in-possession loans" (DIP loans), or DIP loans. The reason why the lender is willing to provide funds is that the bankruptcy law allows them to repay before all other creditors. In the retail industry, the repayment of DIP loan lenders is to close the stock in the store.

"From a historical perspective, those closed stores are very important." Katz Katz, the SSA&Co. executive partner of the consulting firm, explained that the longer the time required for closing stores, the older the corresponding inventory products were, and the lower the value of Matthew. The lender pays much attention to this value.

Of course, the trouble of these traditional retailers can not all be blamed on the epidemic. For example, data from CoreSight Research show that last year alone, 9275 large retail stores in the United States were closed.

Unlike many other industries and businesses, traditional retailers can hardly expect a rebound after the outbreak. The epidemic has caused serious unemployment, directly affecting the subsequent financial situation of consumers, and isolating epidemic prevention also makes more people learn and get used to online shopping.

Source: Tencent US stock