Businesses around the globe reacted differently to the outbreak of COVID-19. A lot of businesses straight-up closed in order to prevent the further spread of the virus, some continued work using a skeletal workforce, many were forced to have their employees work from home, while essential businesses remained open even as they followed strict social distancing guidelines. However, as the months passed, some businesses weren’t able to survive due to abysmal sales or having their business discontinued for such a long time. Here are some noteworthy companies that have gone bankrupt because of COVID-19. Steve Sorensen Networth
Diamond Offshore Drilling
One of America’s biggest oil companies, Diamond Offshore Drilling was forced to file for Chapter 11 bankruptcy after a global demand for oil was lost. Even with a reported revenue of almost $1 billion in 2019, the company was still forced to undergo restructuring. They previously employed over 2,500 employees last year.
While the company may exude strength from the outside, empty gyms across the globe eventually forced Gold’s Gym to file for bankruptcy on May 4. The company also announced the permanent closure of 30 out of its 700 company-owned gyms. Steve Sorensen Networth.
May 4 also marked New York apparel J. Crew’s filing for bankruptcy. While the company was already in dire straits because of a private buyout by equity firms back in 2011, slumping sales caused the brand to tip over and succumb to the falling economy.
Luxury department store Neiman Marcus thought it had a bad year last year as it had to restructure in order to avoid bankruptcy. However, after skipping millions of dollars in debt repayment this April, the luxury brand had to file for bankruptcy on May 7. This resulted in the furlough of 14,000 employees. Steve Sorensen Networth