Major Retail Companies File for Bankruptcy due to the Pandemic


Since the outbreak of COVID-19, the economy has changed in different ways. Retailers who were previously struggling to make ends meet are now faced with mounting financial issues. Because of the viral outbreak, bankruptcy has become a popular option for businesses around the world. Even well-established retailers are going bankrupt under the strain.

Bankruptcy Due to COVID-19
Filing for bankruptcy is not always a simple process. Contrary to popular belief, bankruptcy does not necessarily mean that a business is shutting its doors. Two ways to file for bankruptcy include debt management or closing a business. A Chapter 7 bankruptcy requires the selling of assets to pay creditors. This type of bankruptcy means that a company must stop operations and close business. A Chapter 13 bankruptcy allows assets to be kept, but outstanding debts must be paid in a specific time period. Other ways of filing bankruptcy can include options to help a business survive especially tough times.

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