With the coronavirus pandemic drastically stalling the U.S. economy, some companies have been unable to weather the storm and have filed for Chapter 11 bankruptcy. The retail sector, already struggling before the onset of the pandemic, has been particularly hard hit. For businesses like J. Crew and Neiman Marcus, COVID-19 was the straw that broke the camel's back.
On Monday, tobacco supplier Pyxus International (PYX) - Get Pyxus International, Inc. Report filed for bankruptcy. The stock is down 56% in the last three months. 24 Hour Fitness Worldwide also filed for Chapter 11 bankruptcy protection. The fitness chain was unable to keep up with debt payments as the coronavirus outbreak led to a rise in membership cancelations and gym closures.
Hertz filed for bankruptcy earlier this month as the collapse in the global travel industry overwhelmed its ability to reach long-term agreements with creditors on reduced payments.
"With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery,” CEO Paul Stone said at the time.
Watch the video above to learn about 10 companies that have filed for Chapter 11 bankruptcy due to the coronavirus pandemic.
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