Many big names have filed for bankruptcy from small businesses to huge department stores and entertainment companies since the start of the pandemic COVID-19 situation. Even considering the reopening of the economy, the social distancing measures may continue, and for some companies, this can indicate significant problems in the financial field.
It’s important to understand it very clear; bankruptcy should not mean the end of the road. Most of the time, it means time to stop and get everything right to keep moving forward later on. Also, it doesn’t even mean that a company will go out of business — it’s more like a financial restructuring time to prepare for the changes to come – a second chance.
24 Hour Fitness
24 Hour Fitness, a big chain of the fitness industry (gyms), filed for Chapter 11 bankruptcy on June 14th. The company expects to reopen many of its locations during the coronavirus reopening, and some locations will get permanently closed as part of the rebuilding plan. Still, the brand won’t be out of the market at all.
Hertz
The Hertz Corporation that works with car rental services filed for Chapter 11 bankruptcy on May 22. We will probably still hear from Hertz soon.
Cirque du Soleil
Cirque du Soleil, everybody knows this amazing entertainment group, filed for Chapter 15 bankruptcy on June 29. The company announced that its financial restructuring is due to pandemic-related cancellations. The company also announced a significant number of layoffs. We are pretty sure Cirque Du Soleil is still far from its end. After the pandemic, this may be one of the fastest companies to get back on its feet again.
Keep in mind that bankruptcy is a second chance, not the end of the road for an individual or a company. Contact a McAllen bankruptcy attorney if you are struggling financially and would like to know if bankruptcy would be a good choice for you to get financial relief.