Companies that have gone bankrupt because of COVID-19

Image source: 1011theoutlaw.com

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.

Image source: bbc.com

Gold’s Gym
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.

J. Crew
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.

Neiman Marcus
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

Author: Steve Sorensen Networth

Hello there. I'm Steve Sorensen, a Des Moines-based investment strategist and business blogger. Welcome to my business blog. I received my degree in business from Iowa State University. I do a lot of research on many of the world's most successful companies, in particular on how they built up their net worth over the years. Not only do the success stories of Fortune 500 companies fascinate me so, they also provide a framework to analyze the potential growth outlook of many companies. This assists me in helping my clients find the right mix of companies to add to their portfolios. I spend my weekend downtime keeping fit by playing tennis doubles with friends. I enjoy country music and like to keep updated on the country music festivals. Check back from time to time to see what I've written about.

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