Two months ago, we said that it was just a matter of time before a "biblical" wave of bankruptcies was about to be unleashed on the US as a result of the coronavirus pandemic...
... and sure enough, the first wave is corporate defaults is starting to wash across US shores, with companies in every industry - from retailers, to airlines, and restaurants - but also sports leagues, a cannabis company and an archdiocese plagued by sex-abuse allegations. These are some of the more than 110 companies tracked by Bloomberg that have declared bankruptcy in the U.S. this year and blamed Covid-19 in part for their demise.
While some were in deep financial trouble even before governors ordered non-essential businesses shut to help contain the spread of the virus, most will reorganize and emerge from court smaller and less-indebted. But the hardest hit, are liquidating assets and closing for good.
Among the filers are some of the most iconic names of US business: Hertz, J.C. Penney and as of last week, Brooks Brothers, too. However most 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 below compiled by Bloomberg is only a snapshot of the thousands of corporate entities that have landed in bankruptcy court since the pandemic took hold in March.
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