Major U.S Companies Face Bankruptcy During Pandemic

J. Crew is the most recent major retailer to declare bankruptcy as a result of the pandemic. Prior to the outbreak, J. Crew was reportedly struggling with debt. Because of this, analysts believe they may not survive the pandemic. It’s also predicted retail giants such as JC Penny, Neiman Marcus and Sears may face similar fates as numbers prove they too were struggling with debt, layoffs, and closures prior to the pandemic. Sears already filed for bankruptcy back in 2018. Also facing the harsh reality of bankruptcy is the airline industry. General Electric aviation has had to layoff up to 13,000 employees and more are expected as GE announced plans to permanently reduce their workforce by 25%. United airline’s COO has suggested employees consider “voluntarily separating” from the company as they plan to resize their staff starting October 1st when their federal financial assistance package and incentives to maintain employees runs out.