Bankruptcy Filings by US Companies Reach Eight-Year High Amid COVID-19 Crisis

Hertz, Neiman Marcus and 3,800 Companies Apply
Concerns Over Increase in Bankruptcies if Second Wave Expands

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Due to the impact of the COVID-19 pandemic, the number of companies filing for bankruptcy protection in the United States has reached the highest level in eight years.

The New York Times (NYT) reported on the 17th (local time), citing data from the American Bankruptcy Association (ABA), that over 3,600 companies filed for bankruptcy protection in the first half of this year. This is the highest number of filings in the first half of a year since 2012.

Notable companies that filed for bankruptcy protection in the first half include the car rental company Hertz, well-known clothing company J.Crew, luxury department store Neiman Marcus, shale oil company Chesapeake Energy, Japanese household goods company Muji USA, and retailer New York & Company.

The NYT noted that last month, bankruptcy filings decreased thanks to various federal government support programs, corporate bond issuances, and expanded loans by companies, but with COVID-19 infections rising sharply again, the newspaper forecasted that bankruptcy filings could increase as well.

Restructuring experts warned that if the shockwave of COVID-19 intensifies again, companies barely surviving by increasing loans will face particular difficulties, and the travel industry, including airlines and hotels, is expected to be caught in the aftermath.

This content was produced with the assistance of AI translation services.