CORONAVIRUS CONTRIBUTES TO LARGE RETAILERS FILING BANKRUPTCY

The Coronavirus Pandemic has taken a toll on all sorts of businesses and giant retail chains are no exception. On May 4, 2020 J. Crew filed a Chapter 11 bankruptcy in the Eastern District of Virginia. New Jersey locations include Cherry Hill New Jersey and Blackwood NJ. Just a few days later, Neiman Marcus filed a Chapter 11 bankruptcy on May 7, 2020 in the Southern District of Texas. While online sales has weakened the financial status of large retail stores in recent years, the Coronavrus Pandemic has delivered what could be a fatal blow to some of these retailers. After the stores closing for a period of time due to the pandemic, some reopened for curbside delivery but those sales were not nearly enough to avoid bankruptcy. Unless there is a dramatic turnaround, it is likely that other retailers will follow.