Big Companies that Declared Bankruptcy

This year and the previous year became a crucial year for many businesses. A lot of them became devastated by the financial downturns that they had. The retail industry got the hardest hit as they weren’t able to reach their respective quotas.

As a result, they were forced to file bankruptcy or even close their doors down for good. Usually, in the US, these companies file for Chapter 7 and 11 bankruptcy. The outcome is the entire selling of their assets and financial reconstruction.

The continuous effects of the pandemic are still felt. It makes more companies close down and file bankruptcy. To give you an idea, here are the businesses that filed for bankruptcy recently.

Earth Fare
The majority of the grocery stores of Earth Fare have closed down because of the economic downturn. To be exact, they filed for bankruptcy on February 4. Some entrepreneurs have shown their interest in buying a number of the stores which saved some of it.

Papyrus Store
The parent company of Papyrus store, which is The Schurman Retail group, filed for bankruptcy earlier this year. As a result, Papyrus store and the entire branches of it needed to close their doors for operations because of the declining sales.

Lucky’s Market
This retail chain filed Chapter 11 bankruptcy in January this year. The speculations of people particularly in the industry were correct. Kruger has stated that it will pull out his stake in Lucky’s Market and it was the sign that everything was not going in the right place.

Noah’s Event Venue
This chain has proven its worth in the industry throughout the years of its operation. However, the economic downturn has hit the industry really hard. The lockdowns that have been imposed globally especially in the past year made them not able to sustain their operations. Also last year, the decision was made by a federal judge that they have to close down all the remaining operations that they have.

Modells
The owners of Modell’s Sporting Goods have tried to sell their stores. However, the sad thing is they haven’t found any. This eventually resulted in the liquidation of their stores that led to the complete closing of their business.

Conclusion
Bankruptcy can happen to anyone especially if you are not prepared. The problem will continue to persist especially since the competition right now in a huge number of industries is too stiff. This makes it hard for new businesses to flourish and earn a sustainable income.