Millions of small businesses are at risk of closing down permanently due to the first wave of the coronavirus pandemic – and millions more will shutter their doors forever if the second wave is as bad as Dr. Anthony Fauci predicts.
So which businesses have closed their doors or filed for bankruptcy due to the virus? Here’s the most recent list:
- JC Penney, which is the largest victim of the shutdown to date. The company filed for bankruptcy in mid-May.
- Crew filed bankruptcy in early May.
- Neiman Marcus was the first department store chain to declare bankruptcy in early May.
Forbes is maintaining a “Bankruptcy Watch List,” and as of today, that list includes:
- Capri Holdings (Michael Kors, Versace and Jimmy Choo)
- Levi Strauss
- Signet (Kay Jewelers, Zales, Jared and Piercing Pagoda)
- Tapestry (Coach, Kate Spade and Stuart Weitzmann)
- The Gap
- L Brands (Victoria’s Secret)
- Olympia Sports
The bottom line is that department stores aren’t cut out for long-term closures.
“Retail companies are not built to have their stores closed for extended periods of time, and unfortunately we need to really plan for the worst and hope for the best,” Manny Chirico, the CEO of PVH Corp., the owner of brands including Calvin Klein and Tommy Hilfiger, told CNBC this week.
Chirico expects to see 20 to 25 percent of all U.S. stores to close within the next few years. And he may be right – department stores never quite bounced back from the 2008 recession, and shoppers’ habits have changed significantly since then. The pandemic has made online shopping even more popular, which could be the kiss of death… and we may be in for another retail apocalypse.
What Do You Think?
Do you think these companies should be bailed out, or that they should file for bankruptcy protection in order to stay open? I’d love to hear how you feel about these major retailers closing down, so please feel free to share them on my Facebook page or on my Twitter feed.