Retailers, airlines, restaurants. But also oil producers, mall landlords, and gyms across the country. These are some of the more than 340 companies that declared bankruptcy in the U.S. in 2020 and blamed Covid-19 in part for their demise.
Many were in deep financial trouble even before governors ordered non-essential businesses shut to help contain the spread of the virus. Some, like opioid-maker Mallinckrodt and a number of Catholic dioceses, filed primarily to get relief from huge lawsuit liabilities but also said the pandemic contributed to their financial woes.
Most will try to reorganize and emerge from court smaller and less-indebted, as companies like preppy retailer J. Crew and department store chain Neiman Marcus have already done. The hardest hit, however, are selling off prized assets and some are closing for good.
The bankruptcies include plenty of iconic names like Ruby Tuesday, Guitar Center and Hertz. The vast bulk, though, are small and medium-sized businesses scattered across the country. Their downfall might not normally garner much attention, but it does underscore the full extent of the damage Covid-19 has inflicted on the economy.
The list compiled for this story is based on court records, statements and interviews in which business owners or their lawyers explicitly linked the virus to their decision to file. It is only a snapshot of the thousands of corporate entities that have landed in bankruptcy court since the pandemic took hold in March. And it doesn’t capture the countless businesses that closed shop permanently without seeking protection in court.
The companies that have sought to reorganize or liquidate at least partly because of Covid-19 run the gamut of corporate America. Some had billions of dollars in assets. Others had only a handful of employees on payroll.
Some, like apparel company Ascena had stores dotting suburban malls across the country. The owner of the Ann Taylor and Lane Bryant chains is now considering closing more than 1,000 stores. And then there’s Gold’s Gym, the fitness chain that furloughed almost 4,600 employees after the lockdowns. It’s now being bought out of bankruptcy by the Berlin-based owner of the McFit chain.
You can download the data here.